Disney and FuboTV Merge Live TV Services, Settle Legal Dispute
Published on 1/6/25 by Craig Smith
In a strategic move to enhance their positions in the streaming market, Disney’s Hulu + Live TV and FuboTV have agreed to merge their live television services. This merger positions the combined entity as the second-largest online pay-TV provider in North America, boasting over 6.2 million subscribers and projected annual revenues of $6 billion.
Under the terms of the agreement, Disney will acquire a 70% stake in the merged company, which will continue to operate under the FuboTV brand. FuboTV’s current CEO, David Gandler, will lead the new venture. Despite the merger, both Hulu + Live TV and FuboTV will remain available to consumers as separate offerings.
This collaboration also brings an end to FuboTV’s antitrust lawsuit against Disney, Fox, and Warner Bros. Discovery concerning the proposed Venu Sports streaming service. As part of the settlement, Disney, Fox, and Warner Bros. Discovery will make a combined payment of $220 million to FuboTV. Additionally, Disney has committed to a $145 million loan to FuboTV in 2026, with a $130 million termination fee clause under certain circumstances.
The merger is expected to provide consumers with greater choice and flexibility in live TV streaming options, while also strengthening FuboTV’s financial position and scalability. Following the announcement, FuboTV’s stock experienced a significant surge, more than tripling in value, while Disney’s stock saw a modest increase.
- News Topic: Disney Company News, Disney TV News
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