Fubo and Disney Hulu Live TV to Merge for Combined Virtual MVPD Business
FuboTV Inc. and The Walt Disney Company have teamed up to create a new virtual MVPD company by combining Disney’s Hulu + Live TV business with Fubo. This collaboration will result in Disney owning 70% of Fubo, with Fubo’s current management team continuing to lead the newly formed company under the Fubo name (NYSE: FUBO). The goal is to enhance consumer choice by offering a wide range of programming options while keeping Fubo and Hulu + Live TV as separate services for consumers.
With a combined total of 6.2 million North American subscribers between Fubo and Hulu + Live TV, the new vMVPD company aims to provide more flexible programming choices. The plan includes Fubo creating a new Sports & Broadcasting service that will feature Disney’s premier sports and broadcast networks. Additionally, all legal disputes between Fubo and Disney have been resolved.
The partnership will allow Hulu + Live TV and Fubo to expand their virtual MVPD offerings, catering to different consumer preferences and price points. Disney will establish a new carriage agreement with Fubo, granting access to Disney’s sports and broadcast networks for the new Sports & Broadcasting service. Post-merger, Fubo and Hulu + Live TV will remain available as separate services, offering a wide range of content to their subscribers.
The combined company will benefit from synergies, including more innovative programming options, sales and marketing opportunities, and increased profitability. Fubo shareholders will also reap the rewards of the combination, with the company projected to be well-capitalized and cash-flow positive immediately after the merger.
As part of the agreement, Fubo has settled all litigation with Disney and ESPN related to Venu Sports, a sports streaming platform previously announced by ESPN, FOX, and Warner Bros. Discovery. Disney, FOX, and Warner Bros. Discovery have collectively agreed to pay Fubo $220 million in cash as part of the settlement. Additionally, Disney has committed to providing a $145 million term loan to Fubo in 2026.
The Transaction is subject to regulatory approvals, Fubo shareholder consent, and other closing conditions. Fubo will provide further information about the merger in a Form 8-K filing on its investor relations website. Investors can also tune into an investor conference call on January 6, 2025, at 9:00 a.m. EST to learn more about the collaboration and its potential impact.
