Disney and Fubo Combine Hulu+ Live TV and Fubo Streaming Services

Disney will combine its Hulu+ Live TV service with Fubo, merging two internet TV bundles, the companies announced on Monday. Disney will become the majority owner of the resulting company, with a 70% ownership stake, while Fubo shareholders will own the remaining 30%. The deal is expected to close in 12 to 18 months.

Key Takeaways

• Disney and Fubo are combining their Hulu+ Live TV and Fubo streaming services to create a single entity.
• Disney will own 70% of the combined company, with Fubo shareholders owning the remaining 30%.
• The deal is expected to close in 12 to 18 months.
• Both Hulu+ Live TV and Fubo will still be available separately to consumers after the deal closes.
• The combined company will be led by Fubo’s management team, with a new board of directors to be appointed.

Background

Hulu+ Live TV and Fubo are streaming services that mimic the traditional cable TV bundle, offering linear TV networks. Together, the services have 6.2 million subscribers. Fubo is known for its focus on sports and news content, while Hulu+ Live TV is known for its entertainment offerings.

Impact on Fubo

Fubo is expected to become immediately cash flow positive following the deal close, “instantly making Fubo the major player in the streaming space,” according to Fubo co-founder and CEO David Gandler. Fubo’s stock surged as much as 170% in early trading Monday before paring some gains.

Settlement of Litigation

As part of the deal, Fubo and Disney have settled litigation regarding Venu, the proposed sports streaming service from Disney, Fox, and Warner Bros. Discovery. Fubo had brought a lawsuit against Disney, Fox, and WBD alleging the service would be anticompetitive, and a U.S. judge temporarily blocked the launch of Venu.

Conclusion

The combination of Hulu+ Live TV and Fubo streaming services is a significant development in the streaming industry, creating a major player in the space. The deal is expected to benefit both Disney and Fubo, with Disney gaining a significant stake in the combined company and Fubo becoming immediately cash flow positive.

Frequently Asked Questions

Q: What is the combined ownership stake of Disney and Fubo in the resulting company?
A: Disney will own 70% of the combined company, with Fubo shareholders owning the remaining 30%.

Q: Will Hulu+ Live TV and Fubo continue to be available separately to consumers after the deal closes?
A: Yes, both services will still be available separately to consumers after the deal closes.

Q: What is the expected timeline for the deal to close?
A: The deal is expected to close in 12 to 18 months.

Q: What is the impact of the deal on Fubo’s stock?
A: Fubo’s stock surged as much as 170% in early trading Monday before paring some gains.

Q: What is the status of Venu, the proposed sports streaming service from Disney, Fox, and Warner Bros. Discovery?
A: Fubo and Disney have settled litigation regarding Venu, and the service can move forward with its launch.