If you can’t beat ’em, join ’em — that’s what Disney is doing with Fubo.
On Monday, January 6, 2025, Disney and Fubo announced plans to combine Disney’s Hulu + Live TV vMVPD business with Fubo, a sports-forward virtual multichannel video programming distributor. Though Fubo’s existing management team will lead the combined company and the FUBO stock ticker is how it will trade, Disney will be the majority owner. The two services will remain available separately.
Fubo + Hulu + Live TV will = 6.2 million total subscribers in North America.
There’s also this, straight from the press release: “Disney will enter into a new carriage agreement with Fubo that will allow Fubo to create a new Sports & Broadcast service, featuring Disney’s premier sports and broadcast networks including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.”
Fubo was suing Disney, Warner Bros. Discovery, and Fox over the trio’s own planned sports-programming streaming service, Venu. Through the courts, to this point, the David was able to hold off the Goliath from even launching — so Disney (and WBD and Fox) just threw a ton of money at the problem. The Venu companies have paid Fubo $220 million in cash to settle the pending lawsuit. Disney has separately promised a $145 million term loan to Fubo for 2026.
Disney will own 70 percent of the combined vMVPD company (still called Fubo); the transaction is subject to regulatory and shareholder approval. Should the deal fall through during those stages, Fubo will be on the receiving end of a $130 million termination fee.
But assuming we’re good here — under another Donald Trump presidency M&A activity will likely hit fewer roadblocks than with Joe Biden’s SEC — Fubo Co-founder and CEO David Gandler will run the show with his existing management team.
“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” Gandler said. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow. It’s a win for consumers, our shareholders, and the entire streaming industry.”
That said, it will be Disney that picks the board of directors.
“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility,” Justin Warbrooke, EVP and head of corporate development at Disney, added. “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”
