Fubo and Disney to merge live TV streaming businesses
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Fubo and Disney have agreed to a deal to combine their live TV streaming businesses, the companies announced Monday.
Why it matters: The combination of Hulu's live TV service with Fubo's would form the country's second-largest live TV streamer behind YouTube TV.
- Fubo's stock, worth just above $1 per share prior to the news, more than doubled to $3.18 in early trading.
Zoom in: As part of the deal, Fubo settled its lawsuit against Venu Sports. Fubo's executive chairman is Edgar Bronfman, the billionaire Canadian-American media mogul.
- The combined Hulu + Live TV and Fubo will operate under the Fubo name and the new company will be publicly traded. Disney will own 70% of Fubo once the deal closes.
- Disney and its Venu partners, Fox and Warner Bros. Discovery, will pay Fubo $220 million. In addition, Disney agreed to provide a $145 million loan to Fubo in 2026.
- Fubo's existing management team, led by Fubo co-founder and CEO David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses.
- The deal does not include the rest of Hulu, just the live TV business.
Between the lines: Separately, Fubo is amending its carriage deals with both Disney and Fox. This will allow Fubo to create a sports and broadcasting skinny bundle that will also include ESPN+.
Catch up quick: Last February, Fubo filed a lawsuit against Venu to block the streaming service over antitrust grounds. The sports-centric service is a joint venture among Disney, Fox, and Warner Bros. Discovery.
- A federal judge granted a temporary injunction in August.
- Venu would include content from linear TV networks housed by the three companies, which include ESPN, ABC, TNT and Fox, among others. It was set to cost $42.99 a month at launch.
What's next: The settlement in the Fubo lawsuit removes the temporary injunction, clearing the path for Venu to launch later this year.
Editors note: This story has been updated with additional information.
