Disney’s Hulu + Live TV to Merge with Fubo, Paving the Way for Venu Sports – One America News Network
By Reuters
January 6, 2025 – 6:55 AM PST
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On Monday, Walt Disney Co (DIS.N) announced its decision to merge Hulu + Live TV with smaller competitor FuboTV (FUBO.N), a move that could pave the way for the launch of a sports streaming service in collaboration with Fox Corp and Warner Bros Discovery.
The merger establishes the second-largest internet pay-TV provider in North America, trailing only YouTube TV, with an estimated $6 billion in revenue and 6.2 million subscribers.
Disney will possess a 70% controlling interest in the new entity, which will be led by Fubo’s CEO and co-founder David Gandler. Notably, the deal does not include Hulu’s traditional video-streaming service.
Under the terms of the agreement, Fubo will withdraw its lawsuit against Venu, the proposed sports streaming service from Disney, Fox, and Warner Bros Discovery. The companies will pay Fubo $220 million in cash, alongside a commitment from Disney for a $145 million term loan in 2026.
FuboTV initiated a lawsuit against the major media companies last February, claiming that Venu would violate U.S. antitrust laws by lowering competition and increasing prices. A district court judge had indicated that Fubo was likely to prevail in its antitrust arguments, issuing a temporary injunction against Venu’s launch.
“All litigation between Fubo and Disney has been resolved,” stated the companies on Monday.
Fubo’s stock, which closed at approximately $480 million in market value, experienced a nearly 141% surge to $3.46 in early trading, while Disney saw a slight increase.
Fubo’s stock value dropped over 60% in 2024 due to decelerating revenue growth and escalating competition from larger rivals.
With Monday’s announcement, Disney will also establish a new carriage agreement with Fubo, enabling the creation of a new sports service that will feature Disney’s sports and broadcast networks, including ABC, ESPN, and ESPN+.
Following the merger, Fubo and Hulu + Live TV will remain available to consumers as separate services.
The agreement entails a termination fee of $130 million.
Reporting by Deborah Sophia in Bengaluru; Editing by Shilpi Majumdar and Shinjini Ganguli
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