Online video streaming Merger between Fubo and Disney’s Hulu + Live TV announced
Walt Disney Co. and FuboTV Inc. have announced a merger of their online live TV businesses. Disney’s Hulu + Live TV service will be combined with FuboTV.
Here’s a summary of the key details of the merger:
1. Hulu + Live TV folds into FuboTV: Disney’s Hulu + Live TV service will be combined with FuboTV.
2. Disney takes majority ownership: Disney will own 70% of the combined company, while existing FuboTV shareholders will own the remaining 30%.
3. FuboTV remains the brand: The combined company will operate under the publicly traded FuboTV name.
4. FuboTV management stays in place: FuboTV’s current management team, led by CEO David Gandler, will continue to lead the merged entity.
5. Separate branding continues: Both FuboTV and Hulu + Live TV will continue to be offered as separate brands.
6. Increased subscriber base: The merger creates the second-largest pay-TV provider in the US, with over 6 million subscribers.
7. Benefits for FuboTV: The deal strengthens FuboTV’s financial position, gives them access to Disney’s content (including ESPN and ABC), and allows them to scale more effectively.
8. Legal disputes settled: As part of the deal, FuboTV has settled its legal claims against Disney and ESPN related to the planned Venu Sports streaming service.
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This merger is a significant development in the streaming landscape and could have a major impact on the future of live TV streaming. It will be interesting to see how the combined company evolves and competes with other major players like YouTube TV and Sling TV.
The current management team of Fubo will continue to lead the combined company, which will be owned 70% by Disney. Upon the completion of the transaction, Fubo and Hulu + Live TV will maintain their independent marketing strategies. With 6.2 million users overall, the joint venture is aiming to challenge YouTube TV, which has 8 million subscribers and is the industry leader.
The deal allows Venu Sports to move on because Disney, FOX, and Warner Bros. Discovery will pay Fubo $220 million in cash. Additionally, in 2026, Disney will lend Fubo $145 million. Fubo stands to gain $130 million in termination fee in the event that the merger is unable to obtain regulatory approval.
