In A Surprise, Disney Enters A Definitive Agreement With Fubo
Author: Brad Adgate Source: Forbes
The Walt Disney Company announced today they have entered into a definitive agreement with Fubo, to combine with Hulu + Live TV. The announcement will create a larger virtual MVPD company. At present, Hulu + Live TV has 4.6 million subscribers and Fubo has 1.6 million subscribers. Hence, the new company will have 6.2 million total subscribers in North America ranking second in size to YouTube TV among vMVPD’s. The deal will require regulatory approval.
Under the agreement, Disney will own 70% of Fubo. Also, Fubo’s management team led by David Gandler, the CEO and co-founder will operate the new business. The new entity will operate under the Fubo publicly traded name (NYSE: FUBO) and Disney will appoint the majority of board members. The two companies will continue to be available to consumers separately.
In the press release Gandler said, “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. 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.”
Justin Warbrooke, Executive Vice President and Head of Corporate Development, The Walt Disney Company said, “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. 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.”
As part of the agreement Disney has reached a new carriage agreement with Fubo enabling Fubo to launch a new Sports & Broadcast service that will include Disney’s ABC, ESPN, ESPN2, SECN, ACCN, ESPN2 and ESPN+. As part of the agreement, Fubo subscribers can continue to access their app. Fubo lives streams 55,000+ sporting events each year.
Hulu + Live TV, will continue to be streamed in the Hulu app and be a part of the Disney bundle along with Disney+ and ESPN+. The combined company will negotiate carriage agreements with content providers for both Hulu + Live TV and Fubo, separately from Disney.
The announcement also terminates the ongoing litigation between Fubo and Disney with regards to Venu Sports. Venu Sports is a proposed skinny bundle offering live sports from Disney, Fox and Warner Bros. Discovery. Last August, after a motion made by Fubo, a federal court issued a temporary injunction delaying the launch of Venu Sports which had been set to coincide with the start of the 2024 NFL season.
As late as last month, the court denied Venu Sports motion to dismiss Fubo’s lawsuit. A trial had been scheduled to begin on October 7, 2025. As part of the agreement, Fubo also settled their lawsuit with Fox Sports and Warner Bros Discovery.
Also, Disney, Fox and Warner Bros. Discovery will collectively make a cash payment to Fubo totaling $220 million. In all likelihood, the settlement will also give Venu Sports the proceed with their launch. Also, as part of the agreement Disney will provide Fubo a loan of $145 million in 2026. As part of the agreement, Fubo will receive a $130 million termination fee in the event the deal collapses.
In the wake of the announcement, Fubo’s stock has been surging.