• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Investing

Disney to combine its Hulu+ Live TV with streamer Fubo

by January 6, 2025
written by January 6, 2025

Disney will combine its Hulu+ Live TV service with Fubo, merging together two internet TV bundles, the companies announced on Monday.

Disney will become majority owner of the resulting company — the publicly traded Fubo company — with a 70% ownership stake. Fubo shareholders will own the remaining 30% of the company. The deal is expected to close in 12 to 18 months.

Both Hulu+ Live TV and Fubo are streaming services that mimic the traditional cable TV bundle, offering linear TV networks. Together the streaming services have 6.2 million subscribers.

Both services will still be available separately to consumers after the deal closes. Hulu+ Live TV can be streamed through the Hulu app, as well as part of Disney’s bundle that also includes Hulu, Disney+ and ESPN+.

The deal doesn’t include the streamer Hulu, known for creating original content like “Only Murders in the Building” and “The Handmaid’s Tale,” which competes with platforms like Netflix.

“We are now stewards of an iconic brand with respect to Hulu,” said Fubo co-founder and CEO David Gandler during a Monday call with investors. He added that Hulu+ Live TV’s place embedded inside the Hulu ecosystem adds value by way of user retention.

“Having two separate platforms today, obviously, it’s not ideal,” Gandler said during the call. “We believe there are synergies on the backend…But at the moment we really want to provide consumers with choice.”

Gandler noted that while Fubo has long been focused on offering sports and news, Hulu+ Live TV is known for its entertainment offerings, too.

Fubo is expected to become immediately cash flow positive following the deal close, “instantly making Fubo the major player in the streaming space,” Gandler said on Monday’s call.

Fubo stock, which closed Friday at just $1.44 per share, surged as much as 170% in early trading Monday before paring some gains.

Notably under the deal, Fubo and Disney have settled litigation regarding Venu, the proposed sports streaming service from Disney, Fox and Warner Bros. Discovery.

Fubo had brought a lawsuit against Disney, Fox and WBD alleging the service would be anticompetitive, and last year a U.S. judge temporarily blocked the launch of Venu.

When the Disney-Fubo deal is signed, Disney, Fox and Warner Bros. Discovery will together make a $220 million cash payment to Fubo. Disney will additionally commit a $145 million term loan to Fubo in 2026. If the deal were to fall through, Fubo would receive a $130 million termination fee.

The combined company will be led by Fubo’s management team including Gandler, while its new board of directors will be majority appointed by Disney.

Bloomberg reported earlier on Monday a deal to merge the live TV streaming services was imminent.

Fubo had 1.6 million subscribers in North America prior to the combination with Hulu+ Live TV and competes with other similar bundle platforms like Google’s YouTube TV.

However, Fubo has long focused its bundle on providing sports and news content. It is one of the last to offer a variety of regional sports networks, the channels that host the majority of professional local teams’ games and often beckon high fees from distributors.

As a result, Fubo has dropped entertainment-focused channels from its bundles including AMC Networks’ channels, as well as Warner Bros. Discovery’s TV networks.

Fubo executives said Monday the breadth of the newly combined company will give it more leverage in carriage discussions with other networks.

As part of the merger, the companies also announced Monday that Fubo and Disney entered into a new carriage agreement which allows for Fubo to create a new sports and broadcasting service that features Disney’s networks. During the investor call, Fubo said it also reached a new agreement with Fox.

Fubo’s focus on sports was a primary driver behind its lawsuit against Disney, Warner Bros. Discovery and Fox’s joint venture sports streaming service, Venu.

Venu, which had been slated to launch in time for the beginning of the NFL season in September, was to be a complete offering of sports networks and content from the three media companies that had come together to create it. The app would have cost $42.99 a month, showcasing the high cost of sports in the TV bundle and helping to avoid any disturbance of carriage agreements.

The judge on the case noted that together Disney, Fox and WBD control about 54% of all U.S. sports media rights, and at least 60% of all nationally broadcast U.S. sports rights.

Fubo had alleged in its lawsuit that Venu was anticompetitive and would upend its business. When the U.S. judge temporarily blocked the launch of Venu in August, it was a big win for Fubo. The trio of media companies appealed the court ruling.

With the settlement, Venu can move forward with its launch, although no plans were announced on Monday.

Disney, meanwhile, has multiple irons in the fire when it comes to ESPN streaming options. In addition to its current app, ESPN+, and Venu, ESPN plans to launch a flagship direct-to-consumer streaming app later this year.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Ulta Beauty says CEO Dave Kimbell to retire
next post
Vail stock struggles as strike leads to long lines at Park City Mountain

You may also like

Bed Bath & Beyond relaunches with first store...

August 9, 2025

Lawsuit accuses Apple of stealing trade secrets to...

August 9, 2025

Trump demands resignation of Intel CEO over alleged...

August 7, 2025

Claire’s, known for piercing millions of teens’ ears,...

August 7, 2025

Tim Cook to join Trump at White House...

August 7, 2025

Fox One streaming service to launch ahead of...

August 6, 2025

Murdoch to provide Trump health updates in deal...

August 6, 2025

U.S. farm agency allows six more states to...

August 5, 2025

Amazon lays off over 100 employees in Wondery...

August 5, 2025

All major Las Vegas Strip casinos are now...

August 5, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Bed Bath & Beyond relaunches with first store in Nashville, plans dozens more

      August 9, 2025
    • Lawsuit accuses Apple of stealing trade secrets to create Apple Pay

      August 9, 2025
    • Trump demands resignation of Intel CEO over alleged China ties

      August 7, 2025
    • Claire’s, known for piercing millions of teens’ ears, files for Chapter 11

      August 7, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (592)
    • Stock (6,426)

    Latest News

    • Bed Bath & Beyond relaunches with first store in Nashville, plans dozens more
    • Lawsuit accuses Apple of stealing trade secrets to create Apple Pay

    Popular News

    • Trump inauguration ahead with executive orders in focus – what’s moving markets
    • Grocery stores are rationing eggs as supply falls and prices rise

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy