Disney and Fubo are teaming up in a significant streaming partnership that will combine Hulu + Live TV with Fubo’s operations while maintaining their separate branding and services. Here’s what the deal means for consumers and the streaming landscape.
The Walt Disney Company has announced a joint venture with pay-TV streaming provider Fubo, aiming to enhance the offerings of both Hulu + Live TV and Fubo. Under the agreement, Disney will hold a 70% stake in the new joint venture, while Fubo will own 30%. The partnership will combine the operational aspects of Hulu + Live TV and Fubo, bringing their 6.2 million North American subscribers under one umbrella. However, the Hulu subscription video-on-demand service will remain separate and is not part of this deal.
“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD [multichannel video programming distributor] offerings and provide consumers with even more choice and flexibility,” said Justin Warbrooke, executive vice president and head of corporate development for Disney.
Key Details of the Deal
- Brands Remain Separate: Both Hulu + Live TV and Fubo will continue to be marketed and sold as distinct brands.
- Combined Carriage Agreements: The joint venture will independently negotiate carriage agreements with content providers for Hulu + Live TV and Fubo.
- New Sports Tier: Fubo will launch a new “sports and broadcasting service,” featuring networks from Disney, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, and ESPNews, along with ESPN+.
“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,” said David Gandler, co-founder and CEO of Fubo.
Regulatory and Financial Highlights
As part of the transaction:
- Disney, Fox, and Warner Bros. Discovery will make a $220 million cash payment to Fubo.
- Disney has committed to providing a $145 million term loan to Fubo in 2026.
- A $130 million deal-breakup fee will be payable to Fubo if the transaction fails to close due to regulatory hurdles.
The deal is expected to close within 12 to 18 months, pending regulatory approval.
Governance and Leadership
Fubo’s management team, led by CEO David Gandler, will oversee the new joint venture’s operations. The venture will be governed by a board of directors, with the majority of seats appointed by Disney. Gandler will also serve as a member of the board.
The joint announcement emphasized Disney’s confidence in Fubo’s management team. “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,” said Warbrooke.
Antitrust Lawsuit Dropped
As part of the agreement, Fubo has dropped its antitrust lawsuit against Disney, Fox, and Warner Bros. Discovery. Filed in February 2024, the lawsuit alleged that the three companies had attempted to block Fubo’s sports-first streaming business by launching Venu Sports, a competing sports-focused streaming package. Fubo had previously won a preliminary injunction halting the launch of Venu. The Venu joint venture companies tried to have the case dismissed but failed.
What’s Next?
With Disney’s resources and Fubo’s innovative streaming model, the joint venture is poised to reshape the streaming landscape. Both companies have highlighted the consumer benefits of the partnership, particularly the increased flexibility and enhanced offerings available to subscribers.
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Source: Variety
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