Disney CEO Bob Iger Jesse Grant/Getty Images


January 07, 2025 Tags:

In a move set to reshape the streaming TV landscape, The Walt Disney Company has announced a merger between its Hulu + Live TV service and rival platform Fubo. The unexpected partnership, revealed on Monday, will result in a new company that retains the Fubo name on public markets but will be majority-owned by Disney, holding 70% of the venture and a controlling share of the board. Fubo’s leadership team, including co-founder and CEO David Gandler, will oversee operations.

The merger is projected to close within 12 to 18 months, pending regulatory approvals. Once finalized, it will create a formidable competitor in the virtual multichannel video provider (vMVPD) market, poised to challenge YouTube TV’s dominance. YouTube TV reported 8 million subscribers last year, while Hulu + Live TV and Fubo combined currently have 6.2 million subscribers.

Speaking during a conference call, Gandler expressed confidence in the partnership, stating, “The combined venture will be well-positioned to compete fairly with our peers.”

Distinct Brands, Unified Strategy

Post-merger, both Hulu + Live TV and Fubo will continue operating as separate brands. Hulu + Live TV will remain integrated within Disney’s broader streaming bundle, while Fubo will handle carriage negotiations for both services independently.

This deal will also resolve ongoing legal disputes. Fubo’s lawsuit against Venu, a sports streaming service, will come to an end. Venu, which includes ESPN, ABC, Fox, and Warner Bros. Discovery’s sports channels in its lineup, had been sidelined by an injunction during the NFL season.

Disney, Fox, and Warner Bros. Discovery have agreed to pay Fubo $220 million, with Disney providing an additional $145 million loan through 2026. If the deal falls through, Fubo stands to receive a $130 million termination fee.

Sports-Centric Opportunities

As part of the agreement, Fubo will sign a new distribution deal with Disney, enabling the creation of a more affordable sports-focused bundle centered on ESPN and ABC. This offering is designed to appeal to fans seeking flexible, sports-centric streaming options.

Gandler emphasized the consumer benefits of this collaboration, noting, “This allows us to deliver flexible, innovative, and competitive content packages to consumers, particularly in the sports category.”

While Disney remains focused on launching its flagship ESPN streaming product later this year, the settlement paves the way for diverse pricing options for ESPN content.

Hulu SVOD Service Not Included

The merger does not include Hulu’s standalone subscription video-on-demand (SVOD) service. Instead, the deal centers solely on the vMVPD offerings. Gandler highlighted the unique value of keeping the two platforms distinct: “The Hulu live product is embedded into Hulu SVOD, which helps with retention. While the backend may offer some operational synergies, we aim to provide consumers with choice. Hulu delivers a complete entertainment bundle of sports, news, and entertainment, while Fubo remains focused on its sports-first approach.”

This partnership underscores Disney’s commitment to expanding its streaming footprint while offering viewers more tailored and competitive options in the evolving digital landscape.

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