Cord cutters who have migrated to Hulu + Live TV received big news this week, according to Deadline. Disney announced it purchased the live event streaming platform Fubo. The sports streaming service will merge with the streaming cable alternative to serve a combined 6.2 million subscribers in North America.
Deadline reports the combined service will offer consumers more choices when looking for TV packages. Instead of committing to an entire programming slate, TV viewers can opt for leaner bundles with various news, entertainment, and sports options.
“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,” David Gandler, Fubo co-founder and CEO, said via Deadline. “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.”
"“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” "David Gandler
According to Deadline, Disney will own 70% of the company, with Fubo stakeholders owning the remaining stakes. Gandler and his management team will continue leading the company, which is publicly traded as FUBO. The benefits of the tentative sale were immediate: Fubo's stock price rose 250%. If the deal fails, Fubo is guaranteed a $140 million payout.
What’s new on Hulu this month: Releases, exclusives, and can’t-miss shows
This development comes months before a scheduled court date in which Fubo had filed an anti-trust lawsuit against Disney and two other media conglomerates. The suit sought to block the launch of Venu Sports, a streaming service operated by Disney, Warner Bros. Discovery, and Fox. Venu was first announced last February and was immediately met with caution from the industry. Fubo filed their lawsuit shortly. Attempts to block the suit were dismissed, and Venu's original launch window last fall was delayed. The four parties were to reconvene in October. This new business venture has settled the complaint. Venu Sports still plans to launch sometime this year.
Fubo stated in the SEC filing regarding the settlement, “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.” via Deadline.
"“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”"Justin Warbrooke
“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 via Deadline. “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.”
There has been no developments on any potential price increases as a result of the merger. However, both the Hulu + Live TV and Fubo will still be offered separately.
Follow HuluWatcher to stay up to date with Hulu news and events