Disney Announces Merger of Hulu+Live TV and FuboTV Services

In a significant development in the media landscape, The Walt Disney Company (DIS) has announced its plan to combine its Hulu + Live TV business with sports streamer FuboTV (FUBO). This deal marks one of the first major media mergers of 2025 and is expected to create one of the largest digital pay-TV providers in the market.

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Deal Terms

According to a press release, Disney will retain a 70% stake in the combined business, while Fubo’s shareholders will own the remaining 30%. The new entity will operate under the Fubo publicly traded company name. In conjunction with the transaction, Fubo has settled all litigation related to Venu Sports, the planned sports streaming platform previously announced by Disney, Fox (FOX), and Warner Bros. Discovery (WBD).

Analyst Reaction

MoffettNathanson analyst Robert Fishman noted that the deal appears to be a mutually beneficial solution for both parties, allowing them to put the pending Venu lawsuit behind them without any party admitting defeat. "The risk for Disney, Fox, and Warner Bros. Discovery that moving forward with the Venu case would open bigger questions over the legality of the Pay TV industry’s ‘all or nothing’ strategy likely well outweighed the extra cash payments," he said.

Shares of Fubo surged nearly 250% on Monday following the announcement, while Disney stock was relatively unchanged. Fox and WBD ended Tuesday’s session in the red.

Benefits for Consumers

The combination of Hulu + Live TV and Fubo will provide consumers with a comprehensive digital pay-TV platform offering access to over 100 live TV channels across sports, news, and entertainment. Fubo has primarily focused on sports and news, while Hulu + Live TV is a cable replacement option similar to YouTube TV.

Financial Projections

Fubo’s management team expects the combined company to become immediately cash flow positive, with over 6.2 million subscribers in North America and over $6 billion in revenue. The agreement will also provide Fubo with $220 million in immediate cash, plus $145 million in committed financing available in January 2026.

Growth Opportunities

The deal is expected to create a very competitive and exciting environment for both parties. David Gandler, co-founder and CEO of Fubo, said that the increased scale will provide flexibility to pursue diverse growth strategies, opening up opportunities domestically and internationally. "We are delighted by today’s outcomes," he added.

International Expansion

Fubo has the potential to create skinnier sports, news, and entertainment bundles according to consumer needs. The company will continue to focus on sports and news while offering more consumer options, including access to ESPN+ through amended distribution agreements with both Disney and Fox.

Analyst Commentary

Macquarie analyst Tim Nollen categorized the deal as a positive for both parties. "Financially speaking, this combination with Fubo doesn’t move the needle much, but strategically we think it’s a good move to help consolidate the distribution business further, which could open up more opportunities in carriage negotiations as well as in developing more programmatic advertising," he said.

Antitrust Lawsuit

Fubo had previously filed an antitrust lawsuit against Venu Sports, alleging that Disney, Fox, and WBD used their "iron grip" on commercially critical sports content to extract billions of dollars from distributors and consumers. The lawsuit was temporarily blocked by a judge last summer due to antitrust concerns.

Future of Venu

The settlement of the litigation means that Fubo will face significantly fewer hurdles ahead of its anticipated launch. The service is expected to offer a price point of $42.99 a month, bringing together their respective slates of sports rights. Outside of Venu, Disney will also roll out a separate ESPN flagship streaming platform this fall.

Conclusion

The combination of Hulu + Live TV and FuboTV marks a significant development in the media landscape, creating one of the largest digital pay-TV providers in the market. The deal is expected to provide consumers with a comprehensive digital pay-TV platform offering access to over 100 live TV channels across sports, news, and entertainment.

References

Yahoo Finance: "Disney to Combine Hulu + Live TV with FuboTV"
Business Insider: "Disney, Fox, and Warner Bros. Discovery settle antitrust lawsuit related to Venu Sports"
Variety: "FuboTV’s Antitrust Lawsuit Against Disney, Fox, and Warner Bros. Discovery Temporarily Blocked"