Disney Merges Hulu + Live TV with FuboTV in Major Streaming Deal

In a move that reshapes the internet pay-TV landscape, Walt Disney Co. announced on Monday that it will merge its Hulu + Live TV service with FuboTV. The agreement also clears potential hurdles for the launch of Venu, a sports streaming venture backed by Disney, Fox Corp., and Warner Bros Discovery, according to Reuters.

The deal makes the combined entity the second-largest internet-based pay-TV provider in North America, with approximately $6 billion in revenue and 6.2 million subscribers. Only YouTube TV remains larger. Disney will hold a commanding 70% stake in the joint venture, while FuboTV’s CEO and co-founder, David Gandler, is set to lead the newly formed business, per the Reuters report. Notably, Hulu’s core video-on-demand streaming platform will remain outside the scope of this agreement.

As part of the merger, FuboTV will drop its ongoing lawsuit against Venu. Filed last year, the lawsuit alleged that Disney, Fox, and Warner Bros Discovery were attempting to violate U.S. antitrust laws with Venu by stifling competition and inflating prices. A district court judge had previously ruled in Fubo’s favor by issuing an injunction to temporarily block Venu’s launch, Reuters noted.

The settlement includes a significant financial payout for Fubo, with Disney and its partners agreeing to pay $220 million in cash. Disney also committed to providing a $145 million term loan for Fubo, due in 2026. “All litigation between Fubo and Disney has been settled,” the companies said in a joint statement on Monday.

Read more: India OKs Reliance-Disney Mega-Merger with Conditions, Including Sale of TV Channels

Following the announcement, Fubo’s stock surged by nearly 141% to $3.46 in early trading, a sharp recovery for the company, which had seen its shares plummet more than 60% in 2024 due to slowing revenue growth and fierce competition. Disney shares saw a modest uptick in response to the news.

In addition to resolving legal issues, Disney and Fubo have also entered into a new carriage agreement. This deal will allow Fubo to create a sports-centric streaming package featuring Disney’s popular sports and broadcast channels, including ABC, ESPN, and ESPN+.

Despite the merger, both Hulu + Live TV and FuboTV will continue to operate as distinct services for consumers, according to Monday’s announcement.

Source: Reuters