Disney to Merge Hulu+ Live with FuboTV

Disney has plans to combine its Hulu+ Live TV service with the sports streaming service FuboTV.

This united service will turn out to be the second-largest online pay-TV platform across North America, after YouTube TV, garnering about USD 6 billion in profits and 6.2 million subscribers. These services do internet-based sets of channels, with the intention that they can replace standard cable or satellite television subscriptions.

Disney has accepted a USD 145 million term loan to Fubo, due in 2026.

Under the merger agreement, Disney will keep a 70 percent shareholding within the newly formed FuboTV and Hulu+ Live TV entity that will be run by Fubo CEO and co-founder David Gandler. The new entity will not include Hulu's flagship streaming service.

On the announcement, Fubo's stock surged almost 260 percent to reach a high of USD 5.18 in afternoon trading, giving the company roughly a market value of USD 480 million. A small increase was also noted in Disney's shares.

In the settlement, FuboTV, the sports streaming company, applied to the U.S. District Court in Manhattan to drop an ongoing lawsuit against Venu Sports, the streaming platform that is under development by ESPN, Fox, and Warner Bros Discovery. The settlement includes a payment of USD 220 million cash payment to Fubo.

The lawsuit, which dates back to last February, accused partner companies with Venu of anti-competitive behavior that constitutes "bundling" and restricts competition amongst sports streaming services. Fubo stated that bundling forces distributors to carry less popular networks in return for access to high-demand live sports content, which does not allow one to create a sports-centric service like Venu.

Fubo CEO and co-founder David Gandler stated, “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.”

Fubo enters into an agreement with Disney for licensing rights to its networks that include ABC, ESPN, and ESPN+. This is part of the deal between the two companies announced on Monday. Fubo and Hulu + Live TV will remain two separate services. Fubo will be sports and news, and Hulu + Live TV will continue as a purely entertainment cable alternative. Disney's overall streaming service also includes this subscription as part of its package with Disney and ESPN+ but includes Hulu + Live TV.