Disney’s Hulu + Live TV and sports streaming service Fubo have entered into an agreement to merge, resolving ongoing litigation concerning the creation of Venu Sports.
Both services allow users to stream live television, including broadcast and cable networks, via various internet-connected devices such as smart TVs, mobile phones, and tablets.
Under the terms of the deal, Disney will hold a 70% stake in the combined entity, which will operate under Fubo’s publicly traded name. The company will remain under the leadership of Fubo’s current management team. The merger brings together a total of 6.2 million subscribers in North America for both platforms.
Despite the merger, Fubo and Hulu + Live TV will continue to be available as separate services for consumers after the transaction is finalised.
Fubo’s CEO, David Gandler, expressed the strategic value of the merger, noting, “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.”
As part of the agreement, Disney will extend a $145 million term loan to Fubo, due in 2026. Additionally, there is a $130 million termination fee payable under certain conditions.
Disney has also committed to a new partnership with Fubo that will see the creation of a sports and broadcast service featuring Disney’s sports networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, and ESPN+.
Moreover, the companies announced that Fubo has resolved all litigation with Disney and ESPN concerning Venu Sports, a streaming platform initially planned by ESPN, Fox, and Warner Bros. Discovery. Fubo has also settled disputes with Fox and Warner Bros. Discovery.
A federal judge had previously ruled in August in favour of Fubo, granting a preliminary injunction against Venu Sports.
As part of the settlement, Disney, Fox, and Warner Bros. Discovery will collectively pay $220 million to Fubo. Following the announcement, Fubo’s shares surged by more than 100% in early trading, while Disney’s stock saw a modest increase.
Frances Ibiefo
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