Disney Closes Deal To Combine Hulu+Live TV & Fubo Businesses
Disney has announced that it has finalised the deal with Fubo TV to combine Fubo’s business with Disney’s Hulu + Live TV business, which is now the sixth-largest Pay TV company in the United States, with 6 million subscribers.
This deal came about following the failure to launch Venu Sports, which was going to be a sports-focused streaming platform offering ESPN, FOX and Warner Bros Discovery content; however, Fubo TV was able to use legal proceedings to pause the launch of that project. When the deal fell apart, it was announced that Disney and Fubo had another deal in the works to bring its streaming television businesses together.
Currently, Fubo and Hulu + Live TV will continue to be available to consumers as separate and distinct services, each offering consumers multiple plan options from skinny to robust at compelling price points. Hulu + Live TV will continue to be streamed in the Hulu app and offered as part of an entertainment-focused bundle with Hulu, Disney+ and ESPN Unlimited. Fubo will continue to serve viewers in the Fubo app.
The combined business expects to realise cost, revenue and operational synergies through content cost savings achieved by more flexible programming packaging, advertising optimisation and sales and marketing opportunities. The combined company will have access to a $145 million term loan that Disney has committed to provide Fubo in 2026 as part of the Transaction.
Andy Bird, Chairman of the Board of Director, said in a statement regarding the deal:
“It is a privilege to join Fubo as Chairman at such a transformative time for the company. Today’s announcement brings together two industry leading brands and a compelling set of resources that uniquely position us to meet the evolving needs of today’s consumer.”
David Gandler, Co-founder and CEO of Fubo, added:
“Since Fubo’s founding a decade ago, our vision has always been to build a consumer-first streaming platform defined by innovation and value. Together with Disney, we’re creating a more flexible streaming ecosystem that gives consumers greater choice, while driving profitability and sustainable growth.
We’re also proud to reward our retail shareholders who have supported Fubo’s mission from the very beginning. We believe this combination delivers the scale, stability and strategic clarity to create lasting value for consumers and shareholders, and indelibly impact the future of live streaming.”
As of the Transaction closing, Disney holds an approximately 70% interest in the newly combined company, with existing Fubo shareholders holding an approximately 30% interest.
Fubo’s existing management team, led by Fubo Co-founder and CEO David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses. The combined company will leverage the resources and support of Disney, and the existing Fubo management team will continue to focus on driving growth and profitability.
As part of the Transaction, the Fubo advertising sales group will transition to Disney’s advertising sales organisation to deliver a premium, data-powered experience for fans and the brands that reach them.
Roger’s Take: We are very much in the consolidation part of the streaming wars, as there are too many streaming services available, and bringing these two platforms together will save money. While Disney and Fubo are saying that both platforms are staying separate, I honestly would expect, at some point in the not-so-distant future, that they’ll announce that Hulu+Live TV will merge into Fubo TV. Especially with Hulu set to be incorporated into Disney+ in 2026.
Moving Hulu’s Live TV to Fubo TV will make it much easier on many levels, including marketing, logistics, server costs, and staffing. Ultimately, Fubo and Hulu+Live TV together have a stronger chance of competing with the likes of YouTube TV, but in reality, these streaming alternatives to cable are only a short-term fix while more people shift their television viewing habits.
Disney has been able to get this deal through much earlier than I had expected, and it also likely means Disney can move forward with its plans for what to do with the Hulu brand, now that it has sorted out all of its legal issues with Comcast and Fubo. In the short term, we won’t see any changes, but I also wouldn’t be surprised if the Live TV add-on were also eventually integrated into Disney+ in the US, especially as it has added a Live tab in a recent update.
What do you think of Hulu+Live TV and Fubo TV merging? Let me know on social media!
