Disney’s Hulu+ Live TV Fuses With FuboTV in a Game-Changing Alliance

Disney’s Hulu+ Live TV will soon be added to FuboTV’s streaming services. Combined, the two platforms will have about 6.2 million subscribers, rivaling YouTube TV’s 8 million.    

The deal creates a new, merged Fubo company with Disney controlling 70%, leaving 30% to other shareholders. In addition, Fox, Disney, and Warner Bros. Discovery will give Fubo $220 million in cash alongside a $145 million loan commitment from Disney. Should the agreement fall apart, FuboTV will walk away with a $130 million termination fee.

“Having two separate platforms today, obviously, it’s not ideal,” said FuboTV CEO David Gandler, per CNBC. “We believe there are synergies on the backend … But at the moment we really want to provide consumers with choice.”

Subscribers to Hulu+ Live TV will still have access to Disney+ and ESPN+. However, Fubo is to remain its own brand accessible through a separate streaming TV app with Disney-owned networks like ABC, ESPN, SECN, and ACCN available.

FuboTV Will Get Some Needed Cash and Settle Its Lawsuit

Since its 2015 inception, FuboTV has focused on sports content. Currently, it offers more than 55,000 sporting events.

The combined Fubo company will have more power to negotiate better programming deals, leading to more “flexible, innovative, and competitive” sports programming packages for subscribers. With the injection of new funds, it will be flush with cash and well-capitalized.

“At deal close, our company is expected to become immediately cash flow positive, instantly making Fubo the major player in the streaming space,” Gandler said during an investor call, per UPI.

Nearly a year ago, Fubo filed a lawsuit against ESPN, Warner Bros. Discovery, and Fox. The three companies planned a joint streaming service named Venu Sports. The idea was to offer a bundle of sports channels at a lower cost than traditional pay TV, potentially adversely affecting Fubo’s ability to compete. The Fubo merger deal just announced effectively settles that lawsuit.

Gandler and Fubo’s current management team as well as a board chosen by Disney will run the combined company. The deal, which will likely take 12 to 18 months to complete, still needs shareholder and regulatory approval.