Disney and Fubo TV could change the landscape of live TV streaming if a proposed merger goes through. The companies announced today that Disney plans to acquire 70 percent of Fubo. This is a major offensive move by Disney, which owns a competing TV service called “Hulu + Live TV.
“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,” said Gandler. “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.”
“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,” said Justin Warbrooke, Executive Vice President and Head of Corporate Development, The Walt Disney Company. “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.”
If the merger is approved it will create a company with 6.2 million subscribers. In an important note, though the company will tout combined numbers both Fubo TV and Hulu+ Live TV will continue to operate as individual services. The combined business will operate under the Fubo publicly traded company name (NYSE: FUBO).
The current leader in the live tv streaming or vMVPD space is YouTube TV with 8 million subscribers. The move would further the consolidation of the vMVPD space which also recently saw a proposed merger between DirecTV and Dish Network who also offer their own respective live TV services in DirecTV Stream and Sling TV respectively.
Are Hulu+ Live TV and Fubo the same thing?
No. Both services are similar in the way that all live TV providers are similar but different enough for both to gain by combining. Both operate in a space that offers a replacement to traditional cable TV with a less expensive and more mobile-friendly package. But Fubo has a wider selection of sports channels than Hulu or any other service offered for that matter. For instance, Fubo TV offers regional sports networks like Bally Sports as well as channels that specialize in international sports and more. Hulu + Live on the other hand is a more traditional offering with a wider array of general audience programming.
The Big Story Here
As part of this deal, Fubo will be settling its lawsuit aimed at Disney, Fox Sports and Warner Bros Discovery concerning the yet-to-launch “Venu Sports” streaming service. Fubo filed the lawsuit in 2024 accusing the companies of unfair business practices. Not only that, 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+.
So it sounds like the headline could have been “Venu Officially Dead In The Water As Disney To Launch Sports Service With Fubo”. Unless Disney plans to entangle itself in two services offering the same sort of concept with the extra complication of dealing with Warner Brothers Discovery, which doesn’t bring much to the marriage after it loses NBA broadcast rights going into the 2025 season.
Additionally, a termination 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 (if the merger does not happen because of buricratic reasons) on the terms and conditions set forth in the definitive agreement.
