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Disney Strikes a Deal To Merge Hulu Live TV With Fubo — GeekTyrant

rmtsa by rmtsa
January 9, 2025
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Disney Strikes a Deal To Merge Hulu Live TV With Fubo — GeekTyrant
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Disney has made a deal with streaming provider Fubo, merging Hulu + Live TV and Fubo’s operations into a new joint venture, while also settling Fubo’s antitrust lawsuit against Disney’s sports streaming package, Venu.

Under the agreement, Disney will control 70% of the joint venture, with Fubo holding the remaining 30%. Despite the collaboration, both Hulu + Live TV and Fubo will retain their individual branding and marketing strategies.

Combined, the two platforms will have a subscriber base of 6.2 million in North America, making them a big player in the market, second only to YouTube TV, which reported over 8 million subscribers last year.

The Hulu subscription video-on-demand service is excluded from the deal and will remain a standalone entity.

As part of the agreement, Fubo will create a new sports and broadcasting service featuring Disney’s portfolio of sports and broadcast networks. This tier will include ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNews, and ESPN+, giving sports enthusiasts a robust lineup of content.

Justin Warbrooke, Disney’s executive VP and head of corporate development said in a statement: “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.”

He also expressed confidence in Fubo’s management team to scale the business effectively while delivering high-quality content to subscribers.

In resolving the legal disputes, Disney, Fox, and Warner Bros. Discovery will pay Fubo $220 million. Disney has also committed to providing a $145 million term loan to Fubo in 2026 to support the partnership’s growth. If the deal fails to secure regulatory approval, Fubo is entitled to a $130 million breakup fee.

The lawsuit, originally filed by Fubo in February 2024, accused Disney, Fox, and Warner Bros. Discovery of attempting to stifle Fubo’s sports-first streaming model.

Last summer, Fubo successfully obtained an injunction halting the launch of Venu. The resolution of this lawsuit signals a new chapter of collaboration rather than competition.

Fubo’s management team, led by co-founder and CEO David Gandler, will oversee the joint venture. Gandler, who will also join the board of directors, emphasized the benefits of the partnership:

“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.”

Disney’s influence on the board, along with the operational expertise of Fubo’s team, is expected to guide the venture toward innovation and market expansion.

The deal is anticipated to close within 12 to 18 months, pending regulatory approvals.



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