The Walt Disney Company has announced a merger between its Hulu + Live TV business and the American sports-heavy streaming service FuboTV, to form a combined virtual MVPD (Multichannel Video Programming Distributor) company which is yet to be named.
Disney will own 70 per cent of this new company, which will operate under Fubo co-founder and CEO David Gandler along with Fubo’s existing management team.
Through this merger the consumers will have a choice to access to the available broad set of programming offerings, and will be subject to regulatory approvals, Fubo shareholder approval, and the satisfaction of other customary closing conditions.
Fubo co-founder and CEO Gandler said, “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.”
“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,” commented The Walt Disney Company EVP and head of corporate development Justin Warbrooke.
With this transaction Disney will enter into a new carriage agreement with Fubo, allowing the latter to create a new sports and broadcast service, featuring Disney’s sports and broadcast networks including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNews, as well as ESPN+.
In connection with the transaction, Disney, Fox and Warner Bros. Discovery will make an aggregate cash payment to Fubo of US$220 million. Disney has also committed to provide a US$145 million term loan to Fubo in 2026 as part of the transaction.
