Disney to become majority owner of Fubo through Hulu + Live TV merger 

Disney is set to combine its Hulu + Live TV business with Fubo in a deal that will see the US media giant become a 70% majority owner in the sports-focused streaming service.

David Gandler

The companies announced on Monday that they have entered a definitive agreement to merge Hulu + Live TV with Fubo.

The merged business, which has a combined 6.2 million subscribers in North America, will be traded publicly under the Fubo name.

Fubo’s existing leadership team, which is led by co-founder and CEO David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses.

The deal comes 11 months after Fubo sued Disney, Fox and Warner Bros Discovery (WBD) for the planned launch of Venu Sports, a streamer that was to bring together sports rights from the three US media firms under a combined offering.

Fubo and Disney said that, as a result of the deal, all litigation has now been resolved with Disney, in addition to Fox and WBD.

In connection with the end of the litigation, Disney, Fox and WBD will make a combined payment of US$220m to Fubo, while Disney will also provide a US$145m term loan to Fubo in 2026 as part of the transaction.

In addition, the companies said Disney will enter a new carriage agreement with Fubo that will allow it to create a new “sports and broadcast” service that will feature Disney-owned properties ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.

The transaction remains subject to certain regulatory approvals as well as the approval of Fubo’s shareholders. Should the transaction not come to fruition, Fubo would be owed a termination fee of US$130m.

The companies said the new company will “realise synergies through more flexible programming packaging to cater to all audiences, greater innovation, and sales and marketing opportunities.”

Once the deal closes, Fubo will be governed by a board of directors, with Disney set to appoint the majority of its members. Gandler will be among the board members and will continue to serve as CEO.

“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” said Gandler.

“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.”

Justin Warbrooke, exec VP and head of corporate development at Disney, added: “This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility.

“We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”