In a surprising deal announced on Monday, Disney is set to combine its Hulu Live TV business with Fubo, the live TV streaming service known for its extensive sports coverage. Under the terms of the deal, Disney will own about 70% of Fubo, which will continue to be available to viewers as a separate offering.
This new deal is expected to shake up the streaming TV business as the combined Fubo and Hulu Live TV player will let it take on major competitor YouTube TV, which has over 8 million subscribers. Hulu Live TV and Fubo now have a combined 6.2 million subscribers.
The merger comes nearly a year after Fubo sued ESPN, Fox, and Warner Bros. Discovery over Venu Sports, a proposed joint streaming venture between the three companies. Notably, the hearing was set for today, but Fubo has resolved all legal disputes as part of this transaction. Under the terms of the new agreement, the three companies will collectively pay Fubo $220 million, with Disney also offering a $145 million term loan extending through 2026. Should the merger not go through due to specific conditions, Fubo would be entitled to a termination fee of $130 million.
Hulu Live TV will continue to be available through the Hulu app and will be part of the bundle that includes Hulu, Disney+, and ESPN+. Meanwhile, Fubo will maintain its service through its app. Fubo’s current management team, led by co-founder and CEO David Gandler, will oversee the operations of the newly merged Fubo and Hulu Live TV businesses.
Launched in 2015 as a streaming service for soccer matches, Fubo has grown into a live sports behemoth, offering over 55,000 sporting events on its platform to date. It became a publicly traded company in 2020.
