Disney (DIS) will combine its Hulu + Live TV business with sports streamer FuboTV (FUBO) in the first important negotiation movement with the media of 2025.
According to a Press releaseDisney will control 70% of Fubo. Shareholders of the sports streamer will own the remaining 30% of the combined business, which will operate under the name of the publicly traded company Fubo.
Along with the transaction, Fubo resolved all disputes with Disney, Fox (FOX), and Warner Bros. Discovery (W.B.D.) related to Venu Sports, the trio’s previously announced planned sports streaming platform.
Fubo shares rose nearly 250% on Monday following the announcement and were up more than 20% in early trading on Tuesday. Disney shares closed little changed but opened up about 2% on Tuesday.
The combination of the two companies will form one of the largest providers of digital pay television as consumers look for cable alternatives amid further disruption to cable service.
Fubo, which offers users access to live TV channels over the Internet, has focused primarily on sports and news. Hulu + Live TV, categorized as a cable replacement option, similar to YouTube TV, allows users to stream from approximately 100 live TV channels across sports, news and entertainment.
In a call to investors following the announcement, Fubo said the combined company is “expected to be immediately cash flow positive,” with more than 6.2 million subscribers in North America and more than $6 billion in revenue. .
The deal will also provide Fubo with $220 million in immediate cash, plus $145 million in committed financing available in January 2026 to improve liquidity and ensure continued investments.
“We are delighted with today’s results,” said David Gandler, co-founder and CEO of Fubo, who will also lead the new business. “Greater scale means we have the flexibility to pursue diverse growth strategies, opening up a range of opportunities, both domestically and internationally.”
Gandler added that while Fubo will continue to focus on sports and news, it will now be able to provide even more consumer options, including access to ESPN+ through modified distribution deals with Disney and Fox.
“Most importantly, Fubo has the potential to create smaller sports, news and entertainment packages based on consumer needs,” he said, noting that Hulu + Live TV will remain an entertainment-focused cable replacement service.
Overall, Fubo’s management team said the deal will create a “very competitive and exciting environment” and that the company is now “preparing” for its growth phase.
