Disney has announced a merger combining Hulu+ Live TV with Fubo, marking a significant change in the streaming industry. The agreement gives Disney a 70% ownership stake, while Fubo shareholders will maintain 30% of the consolidated entity.
The partnership brings together two established streaming services with different strengths. Hulu+ Live TV offers an extensive entertainment library, while Fubo has built its reputation on comprehensive sports coverage. Both services will continue to operate independently after the merger, allowing subscribers to maintain access to their current platforms while potentially benefiting from expanded content options from live sports and breaking news to acclaimed series and family entertainment.
The financial aspects of the deal include a $220 million cash payment from Disney to Fubo and a $145 million term loan. These investments are expected to make Fubo cash flow positive immediately. The agreement also resolves legal disputes between Fubu and Disney regarding Venu, the sports streaming service proposed by Disney, Fox and Warner Bros. Discovery.
Fubo’s current management team will lead the combined organization, with Disney appointing the majority of the board of directors. This structure aims to preserve each company’s expertise while developing new opportunities for growth. The merger addresses both companies’ goals: Disney expands its digital presence, while Fubo gains additional resources and content access.
Subscribers can expect continued access to their preferred content, with potential additions to both services’ offerings over time. While specific pricing details haven’t been announced, the combined service aims to remain competitive in the growing streaming market.