Disney Hulu+ Live and FuboTV to merge

Disney announced plans to merge its Hulu + Live TV with sports streaming platform FuboTV.

The merger will create the second-largest online pay-TV platform in North America, after YouTube TV, boasting approximately $6 billion in revenue and 6.2 million subscribers. These services offer internet-based channel packages, positioning themselves as alternatives to traditional cable or satellite TV subscriptions.

Disney has agreed to a $145 million term loan to Fubo, due in 2026.

Disney will hold a 70% controlling stake in the newly merged FuboTV and Hulu + Live TV venture, which will be overseen by Fubo CEO and co-founder David Gandler. The agreement does not include Hulu’s core video-streaming service.

Following the announcement, Fubo’s stock saw a significant jump, rising by approximately 260% to $5.18 in afternoon trading, giving the company a market value of roughly $480 million. Disney’s shares saw a slight increase.

As part of the settlement, FuboTV, the sports streaming service, has requested the U.S. District Court in Manhattan to dismiss its ongoing lawsuit against Venu Sports, the streaming platform being developed by ESPN, Fox, and Warner Bros Discovery. The agreement includes a $220 million cash payment to Fubo. 

FuboTV's lawsuit, filed last February, accused Venu's partners of anti-competitive behavior, claiming the practice of "bundling" was limiting competition among sports streaming services. Fubo argued that bundling forced distributors to carry less popular networks in exchange for access to high-demand live sports content, preventing the creation of a sports-focused service like Venu.

Gandler said in the statement, “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.”

As part of the deal announced on Monday, Disney will enter into a licensing agreement with Fubo, allowing the sports streaming service to offer Disney’s sports and broadcast networks, including ABC, ESPN, and ESPN+. Despite the merger, both Fubo and Hulu + Live TV will remain separate services, with Fubo focusing on sports and news, while Hulu + Live TV continues as an entertainment-driven cable alternative. Hulu + Live TV will still be included in Disney’s broader streaming package alongside Disney+ and ESPN+.