Disney Deal combines Hulu + Live TV with Fubo, ending Venu lawsuit
Disney announced a deal with Internet pay-TV streaming provider Fubo to combine Hulu + Live TV with Fubo’s operations in a joint venture. Under the deal, Fubo will drop its lawsuit over Venu, the sports-focused streaming package from Disney, Fox Corp. and Warner Bros. Discovery, to derail it.
The Hulu subscription video-on-demand service is not part of the Fubo deal and will remain separate. Fubo and Hulu + Live TV will have a combined 6.2 million North American subscribers, behind Google’s YouTube TV, which reported nearly a year ago that it had more than 8 million customers. In addition, Fubo will create a new “sports and broadcasting service,” featuring Disney’s sports and broadcasting networks.
Disney will own 70% of the pay-TV joint venture and Fubo will own the remaining 30%. Hulu + Live TV and Fubo will continue to market and sell their own live TV services.
In connection with the deal, Disney, Fox and Warner Bros. Discovery to make a total cash payment to Fubo of $220 million. Additionally, Disney has committed to providing a $145 million term loan to Fubo in 2026 as part of the transaction. In addition, a deal breakup fee of $130 million will be payable to Fubo under certain circumstances, including if the transaction cannot be completed due to the failure of the transaction.
to obtain the required regulatory approvals for the terms and conditions in the agreement.
“This combination will enable both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD [multichannel video programming distributor] offering and offer consumers even more choice and flexibility,” said Justin Warbrooke, executive VP and head of business development for Disney, in a statement. “We have confidence in Fubo’s management team and their ability to grow the business by delivering high-quality offerings that provide subscribers with the content they want and deliver great value.”
. Fubo’s existing management team, led by Fubo co-founder and CEO David Gandler, will lead the newly combined Fubo and Hulu + Live TV businesses.
In February 2024, Fubo filed a federal antitrust lawsuit against Disney, Fox and Warner Bros. Discovery to block the launch of Venu, claiming that the companies (along with Disney’s ESPN and Hulu) “have waged a years-long campaign to block the launch of Venu.” Fubo’s innovative sports-focused streaming business, resulting in significant harm to both Fubo and consumers.” Last summer, Fubo won a preliminary injunction halting the three companies’ launch of Venu.
There’s more to come
