Disney has announced the merger of its television service Hulu+ Live TV and sports streaming platform FuboTV. The result will be a joint venture with 6.2 million subscribers. Disney will acquire 70% of the shares of the new company.
After the merger, Fubo will continue to operate as a public company under the leadership of CEO and co-founder David Handler; Hulu + Live TV and Fubo will continue to be offered as separate services after the transaction closes. As part of the deal, FuboTV will also drop a lawsuit against Venu Sports that Disney, Fox and Warner Bros. had previously planned to launch; Fubo will receive $220 million in compensation from those companies, as well as $145 million from Disney in 2026. The merger is expected to create a new sports service with access to Disney content, including ABC, ESPN and ESPN+. Hubbo’s stock price rose 141% after the acquisition was announced, but fell more than 60% in early 2024 due to intense competition and slowing revenue growth. However, the acquisition is still subject to regulatory and shareholder approval.
Hulu + Live TV is part of Disney’s global empire, which brings viewers original programming such as The Handmaid’s Tale and The General. The merger does not include Hulu’s main streaming service, which will continue to operate separately. Launched in 2015, FuboTV became a popular platform for watching live sports events, but by 2024 it faced a decline in popularity due to competition from YouTube TV and other big players in the market.
The Disney-Fubo merger has the potential to transform the North American digital television market. Given the size of the merger and ESPN’s access to content, the deal could bring new growth to both platforms. If regulators approve the deal, it could create a strong competitor to YouTube TV.
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