Disney has struck a deal with streaming provider Fubo, combining Hulu + Live TV and Fubo’s businesses in a new joint venture, while also resolving Fubo’s antitrust lawsuit against Disney’s sports streaming package, Venu.
Under the agreement, Disney will control 70% of the joint venture, while Fubo will own the remaining 30%. Despite the collaboration, both Hulu + Live TV and Fubo will maintain their individual branding and marketing strategies.
Together, the two platforms will have a subscriber base of 6.2 million in North America, making them a large player in the market, second only to YouTube TV, which reported more than 8 million subscribers last year.
Subscription video-on-demand service Hulu is excluded from the deal and will remain a standalone entity.
As part of the deal, Fubo will create a new sports and broadcast service that will feature Disney’s portfolio of sports and broadcast networks. This tier will include ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNews and ESPN+, offering sports fans a robust lineup of content.
Justin Warbrooke, Disney’s executive vice president and head of business 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. greater”.
He also expressed confidence in Fubo’s management team that can expand the business effectively while providing high-quality content to subscribers.
In settling the legal disputes, Disney, Fox and Warner Bros. Discovery will pay Fubo $220 million. Disney also committed to providing a $145 million term loan to Fubo in 2026 to support the partnership’s growth. If the deal fails to gain 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 trying to stifle Fubo’s first sports streaming model.
Last summer, Fubo successfully obtained an injunction blocking the launch of Venu. The resolution of this lawsuit marks a new chapter of collaboration rather than competition.
Fubo’s management team, led by the co-founder and CEO David Gandlerwill oversee the joint venture. Gandler, who will also join the board of directors, highlighted the benefits of the partnership:
“This deal allows us to grow 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 of directors, coupled with the operational expertise of the Fubo team, is expected to drive the venture towards innovation and market expansion.
The deal is expected to close within 12-18 months, pending regulatory approvals.
by Joey Paur
Source: Geek Tyrant
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