In a significant move that will send shockwaves across the industry, The Walt Disney Company and FuboTV Inc. have announced a merger of their live TV streaming services, Hulu + Live TV and Fubo, respectively. They announced their strategic partnership on January 6, 2025, which aims to have a formidable presence in the virtual multichannel video programming distributor (vMVPD) market.
Details of the merger
Under the terms of the agreement, Disney will acquire a 70% ownership stake in the combined entity, which will operate under the publicly traded name of Fubo. Both Hulu + Live TV and Fubo will continue to function as separate services despite the merger so they can maintain their distinct identities and subscribers.
The combined subscriber count exceeds 6.2 million in North America, positioning the new venture as the second-largest online pay-TV provider, trailing only YouTube TV. The leadership of the merged company will remain with Fubo's existing executive team and will leverage Fubo's expertise in sports streaming while integrating Disney's expansive entertainment portfolio.
The merger also brings an end to ongoing litigation between Fubo and major industry players, including Disney, Fox Corporation, and Warner Bros. Discovery. The dispute was over the launch of Venu Sports, a joint sports streaming venture by these companies. As part of the merger agreement, Disney, Fox, and Warner Bros. Discovery have discontinued the Venu Sports project, agreed to a $220 million settlement payment to Fubo, and have extended a $145 million term loan to support the new venture.
This merger highlights the growing popularity of live sports and need to include it in streaming subscriptions. By combining resources, Disney and Fubo aim to provide consumers with enhanced viewing options that might include a new sports and broadcast package featuring Disney's networks and ESPN+.
The merger between Hulu + Live TV and Fubo will likely close within the next 12 to 18 months, with little change in the platforms as the integration progresses.
Will Hulu + Live TV and Fubo become one service?
No, Hulu + Live TV and Fubo will remain separate services with their own branding and subscriber bases. However, they will share content and resources, offering expanded options to users.
Will there be price changes for Hulu + Live TV or Fubo?
There has been no official announcement about price changes yet. However, as the two services align their offerings, subscribers may see bundled packages or adjusted pricing structures.