Walt Disney Co (NYSE:DIS, ETR:WDP) and FuboTV have announced plans today to combine Disney’s Hulu + Live TV with Fubo into a single virtual TV provider.
Disney's shares traded up 1% on the news at $112 while FuboTV stock surged 143% to approximately $3.50.
The newly merged company will operate under the Fubo name, with Disney becoming the majority owner, holding a 70% stake, Disney and Fubo companies said on Monday.
Fubo’s current leadership team, led by CEO David Gandler, will oversee operations.
The combined service will keep both Fubo and Hulu + Live TV as separate options for consumers, bringing together their 6.2 million North American subscribers.
The merger aims to offer viewers more flexible programming choices, including live sports and expanded entertainment options.
Fubo also plans to launch a Sports & Broadcasting service, integrating Disney’s sports and broadcast networks.
“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” Gandler said, calling it "a win for consumers, our shareholders, and the entire streaming industry.”
Justin Warbrooke, Disney’s Executive Vice President and Head of Corporate Development, added: “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”
In connection with the deal, Fubo has resolved all legal disputes with Disney, ESPN, FOX, and Warner Bros. Discovery related to Venu Sports, a sports streaming platform being developed by ESPN, FOX, and Warner Bros. Disney, FOX, and Warner Bros Discovery will make a combined $220 million cash payment to Fubo.
Additionally, Disney will provide Fubo with a $145 million term loan in 2026. If the deal fails due to regulatory issues, Fubo is entitled to a $130 million termination fee.