Disney will combine its Hulu + Live TV business with Fubo and become majority owner of the resulting company in a deal that settles all litigation between Fubo, Disney, Fox and Warner Bros. Discovery over the Venu Sports streaming joint venture, a case that was set for a hearing in New York today.
As the television landscape continues to evolve, the combined business of former adversaries creates a new live streaming player that will operate under Fubo’s publicly traded company (stock symbol FUBO) and be led by the existing Fubo management team. The deal will provide the enhanced Fubo with Disney resources starting with an immediate $220 million cash injection at close, and a $145 million term loan available in January of 2026.
Venu, announced with great fanfare last February, got a name and logo in May under CEO Pete Distad. The service aggregating linear feeds from 14 sports-centric networks and streaming services of its three partners was priced at $42.99 a month in August. But a planned fall launch was stalled by an antitrust lawsuit filed quickly by Fubo. The Venu partners tried and failed to get the case dismissed and a trial was set for October of 2025 in U.S. District Court in Manhattan.
That’s off. In an SEC filing this morning, Fubo said, “the Settling Parties agreed to settle all claims asserted in the Action, including … claims concerning the defendants’ bundling or tying of television channels, defendants’ use of most-favored nations clauses, and the contemplated and previously announced Venu joint venture, and to dismiss all claims in the Action with prejudice.”
With a combined 6.2 million North American subscribers between Fubo and Hulu + Live TV, the new vMVPD company is expected to enhance consumer choice through more flexible programming offerings, Disney and Fubo said in a joint release. Both services will continue to be available to consumers as separate offerings.
The deal amended Fubo’s carriage agreements with Disney and Fox and will create a new Sports & Broadcasting offering to include their networks as well as ESPN+.
The transaction is subject to closing conditions including approval from regulators and Fubo shareholders. Fubo gets a $130 million breakup fee if it doesn’t happen, execs said on a call this morning after the news. They touted the new opportunities and fresh liquidity new owner Disney will bring and hinted at international expansion and potential deals.
“We are preparing ourselves for our growth stage,” said Fubo co-founder and CEO David Gandler.
At closing, Disney will own 70% of Fubo. Fubo’s existing management team, led by Gandler, will operate the newly combined 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,” Gandler said. “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.”
It was definitely a win for Fubo’s stock price, which surged more than 200% before the market open to about $4.40.
“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, Disney EVP and Head of Corporate Development. “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 Fubo to create 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+.
The new Fubo will be governed by a board of directors with the majority appointed by Disney, as well as independent directors. Gandler will also serve on the board of directors continuing as Fubo’s CEO.
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