- Disney and Fubo are merging their live TV streaming services. Disney will be the majority owner, but Fubo’s CEO will run the business. Both channels will continue to be offered as stand-alone services.
Disney is expanding its live TV business, announcing plans Monday to combine Hulu+ Live TV service with one-time rival Fubo in a merger that will see Disney become the majority owner.
Together, the two services have 6.2 million subscribers, which still falls short of other live TV streaming options, like YouTube TV, which has 8 million. The combined business will operate under the Fubo brand, which will continue to be publicly traded. (Shares of Fubo were up 123% in early trading Monday.) Fubo CEO and cofounder David Gandler will run the business.
Both channels will continue to be offered separately.
The merger will put an end to Fubo’s lawsuit, filed last February, which sought to block the launch of Venu Sports, the sports-focused streaming service from ESPN, Warner Bros. Discovery, and Fox Corp. The companies said the service would cost a whopping $43 per month after a seven-day free trial. Last August, a judge had blocked the launch of that service, saying it would limit competition. Shares in Fubo surged when that happened.
Fubo will receive a cash payment from Disney, Warner Bros. Discovery, and Fox for $220 million as part of the settlement of those legal issues.
“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.”
The deal does not include the Hulu streaming service, whose original programming includes The Handmaid’s Tale and Only Murders in the Building.
Federal regulators will need to approve the deal before it closes.