Fubo, the popular live sports TV streaming service, announced on Tuesday that its shareholders have approved its transaction with Disney, combining Fubo with Hulu Live TV.
Initially announced in January, the deal brings the companies closer to finalizing an agreement that is anticipated to disrupt the streaming industry by making Hulu a far bigger threat to its larger rival, YouTube. YouTube TV reportedly now has around 10 million subscribers, in large part due to is live sports-related content. Hulu Live TV and Fubo together have about 6 million subscribers, so this merger is a step towards closing that competitive gap.
Additionally, if executed well, it could offer sports fans more flexible options. For instance, sources suggest that Fubo may be exploring the idea of introducing a new Hulu-branded package as a perk for streamers, featuring access to Disney’s trio of streaming services (Disney+, Hulu, and ESPN) at no additional cost. The company recently announced the launch of a skinny sports-only package at a lower price point.
However, the approval obtained at the Fubo shareholder meeting on Tuesday still awaits regulatory approvals, as the deal will create a larger entity and impact market competition, reducing the number of independent streaming players.
Once the transaction is finalized, Disney will own approximately 70% of Fubo. However, possibly with those regulatory approvals in mind, Fubo promises it will continue to be available to viewers as an independent offering. That said, Disney is consolidating this unit under a single leader: David Gandler, co-founder and CEO of Fubo, who will oversee the newly merged Fubo and Hulu Live TV operations.
