Disney announced a deal with internet pay-TV streaming provider Fubo to combine Hulu + Live TV with Fubo’s operations in a joint venture. Under the deal, Fubo will drop its lawsuit seeking to derail Venu, the sports-focused streaming package from Disney, Fox Corp. and Warner Bros. Discovery.
The Hulu subscription video-on-demand service is not part of the Fubo deal and will remain separate.
Disney will own 70% of the pay-TV joint venture and Fubo will hold the remaining 30%. Hulu + Live TV and Fubo will continue to market and sell their own live TV services.
In connection with the deal, Disney, Fox and Warner Bros. Discovery will make an aggregate cash payment to Fubo of $220 million. In addition, Disney has committed to provide a $145 million term loan to Fubo in 2026 as part of the transaction. Furthermore, a deal-breakup fee of $130 million will be payable to Fubo under certain circumstances, including if the transaction fails to close due to the failure
to obtain requisite regulatory approvals on the terms and conditions in the agreement.
“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD [multichannel video programming distributor] offerings and provide consumers with even more choice and flexibility,” Justin Warbrooke, executive VP and head of corporate development for Disney, said in a statement. “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.”
Fubo and Hulu + Live TV will have a combined 6.2 million North American subscribers. In addition, Fubo will create a new “sports and broadcasting service,” featuring Disney’s sports and broadcast networks.
In February 2024, Fubo filed a federal antitrust lawsuit against Disney, Fox and Warner Bros. Discovery seeking to block the launch of Venu, alleging that the companies (together with Disney’s ESPN and Hulu) have “engaged in a years-long campaign to block Fubo’s innovative sports-first streaming business resulting in significant harm to both Fubo and consumers.” Last summer, Fubo won a preliminary injunction halting the three companies’ launch of Venu.
More to come
