The deal, still subject to regulatory approvals, will form a combined virtual MVPD company; Fubo’s existing management team, led by David Gandler, will operate the newly combined Sports & Broadcast services.
Disney is set to combine its Hulu + Live TV business with Fubo, forming a combined virtual MVPD company. The deal is subject to regulatory approvals, Fubo shareholder approval, and the satisfaction of other customary closing conditions.
Under the terms of the definitive agreement, Disney will own 70% of Fubo at closing. Disney, FOX and Warner Bros. Discovery will make an aggregate cash payment to Fubo of $220 million. Disney has also committed to provide a $145 million term loan to Fubo in 2026. A termination fee of $130 million will be payable to Fubo under certain circumstances, including if the deal fails to close due to the failure to obtain requisite regulatory approvals on the terms and conditions set forth in the definitive agreement.
Fubo’s existing management team, led by co-founder and CEO David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses.
“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,” said Gandler. “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. It’s a win for consumers, our shareholders, and the entire streaming industry.”
Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings post-closing. Hulu + Live TV will continue to be streamed in the Hulu app and be offered as part of the bundle with Hulu, Disney+ and ESPN+. Fubo, which streams more than 55,000 live sporting events annually, will continue to serve its subscribers in the Fubo app.
“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,” said Justin Warbrooke, Executive Vice President and Head of Corporate Development, The Walt Disney Company. “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, Disney will enter into a new carriage agreement with Fubo that will allow for the creation of a new Sports & Broadcast service, featuring Disney’s premier sports and broadcast networks including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.
Fubo has settled all litigation with Disney and ESPN related to Venu Sports, the previously announced sports streaming platform planned by ESPN, FOX and Warner Bros. Discovery. Fubo has also settled all litigation with FOX and Warner Bros. Discovery.
Source: The Walt Disney Company
Journalist, antique shop owner, aspiring gemologist—L'Wren brings a diverse perspective to animation, where every frame reflects her varied passions.
