FuboTV Inc shares added another 10% before Tuesday’s trading after news of a deal with Walt Disney Co (NYSE:DIS, ETR:WDP) sent the stock over 250% higher on Monday.
Earlier in the week, Disney unveiled plans to merge its Hulu + Live TV wing with Fubo to create North America’s second-largest online pay-TV company, behind YouTube TV.
Live sports streaming firm Fubo in turn asked for a lawsuit aimed at blocking Disney, Fox and Warner Bros Discovery’s planned Venu Sports service to be dropped.
Under the tie-up, Disney will own 70% of the Fubo and Hulu + Live venture, which is set to boast 6.2 million subscribers and roughly US$6 billion in revenue.
Fubo boss and founder David Gandler will head up the merged business, which will operate as a stand-alone company offering cable TV-like packages via the internet.
Disney, Fox and Warner Bros also agreed to pay Fubo US$220 million to settle its lawsuit, which had accused them of anti-competitive practices last February.
Disney had separately committed to a US$145 million term loan for Fubo in 2026.
Fubo shares shed over 60% in 2024 as intensifying competition from rivals ate into revenue growth.
Shares climbed 10.1% to US$5.57 in Tuesday’s pre-market trading, after having jumped by 251.4% on Monday.