Fubo and Disney’s Hulu + Live TV Unit to Merge

FuboTV and The Walt Disney Company have announced a merger that will combine Disney’s Hulu + Live TV business with Fubo, serving over 6.2 million customers in North America. This exciting development has seen FUBO shares increase by over 200% in NYSE premarket trading.

Under the agreement, Fubo’s current management team, led by CEO David Gandler, will oversee the new venture, with Disney holding a 70% controlling stake. As part of the merger, Fubo has settled all litigation with Disney, ESPN, Fox, and Warner Bros. Discovery, with the latter companies collectively paying Fubo $220 million to resolve existing lawsuits.

Disney has also committed to providing a $145 million term loan to Fubo in 2026 as part of the deal. The new carriage agreement will see Fubo create a sports and broadcast service featuring Disney’s popular networks like ABC, ESPN, and ESPN+, among others.

Despite the merger, both Fubo and Hulu + Live TV will continue to operate as separate services for consumers. The combined entity is expected to be financially strong post-deal closing, with a termination fee of $130 million payable to Fubo in case the transaction fails under certain conditions.

This partnership sets the stage for a new era in streaming entertainment, ensuring that viewers have access to a diverse array of content and services. Keep an eye out for more updates as the merger progresses.