In a move that reshapes the streaming landscape, The Walt Disney Company and FuboTV Inc. today announced a groundbreaking agreement to merge Hulu + Live TV with Fubo, creating a virtual multichannel video programming distributor (vMVPD) powerhouse. This unexpected alliance brings together two major players in the streaming wars, promising greater consumer choice and flexibility.
Under the terms of the deal, Disney will become the majority owner of Fubo, holding approximately 70% of the combined company. However, Fubo will retain its name and public listing on the New York Stock Exchange (NYSE: FUBO), with its current management team, led by co-founder and CEO David Gandler, at the helm.
“This is a win-win-win,” said Gandler. “Consumers get more choices, our shareholders benefit from a stronger company, and the streaming industry takes a major step forward.” He emphasized the combined entity’s commitment to providing a wider range of programming packages at attractive prices, catering to diverse viewer preferences.
The merger brings together over 6.2 million North American subscribers from both services. While both Fubo and Hulu + Live TV will continue to operate as separate offerings, the deal unlocks significant potential for synergy. Fubo, known for its comprehensive sports coverage, will gain access to Disney’s premier sports and broadcast networks, including ESPN, ABC, and ESPN+, allowing them to create a new, dedicated Sports & Broadcasting service. Hulu + Live TV, with its strong entertainment lineup, will continue to be offered within the Hulu app and as part of the popular Disney Bundle alongside Disney+ and ESPN+.
This strategic partnership also marks the end of a contentious legal battle between the two companies. All litigation surrounding Fubo’s planned sports streaming platform, Venu Sports, has been settled, with Disney, FOX, and Warner Bros. Discovery making a combined cash payment of $220 million to Fubo.
“We are confident in Fubo’s leadership and their ability to leverage this merger to deliver exceptional value and a superior streaming experience,” stated Justin Warbrooke, Disney’s Executive Vice President and Head of Corporate Development.
The deal, subject to regulatory and shareholder approvals, is expected to create a financially robust entity, projected to be cash-flow positive immediately upon closing. Disney has also committed to providing a $145 million term loan to Fubo in 2026, further solidifying the combined company’s financial footing.
This surprising merger signals a potential shift in the streaming industry, where collaboration and consolidation may become increasingly important for navigating the evolving media landscape and meeting the ever-growing demands of consumers.