Disney and FuboTV Announce Joint Venture for Live TV Streaming
Disney has reached an agreement with FuboTV, a live TV streaming provider, to form a joint venture combining Hulu + Live TV with Fubo’s operations. This deal concurrently resolves a lawsuit Fubo filed against Disney, Fox Corp., and Warner Bros. Discovery, aiming to prevent the launch of their sports-focused streaming platform, Venu. The agreement notably excludes Hulu’s on-demand service, which will remain independent.
The joint venture will see Disney holding a 70% stake, while FuboTV retains the remaining 30%. Both Hulu + Live TV and FuboTV will continue to operate and market their respective services independently. As part of the settlement, Disney, Fox, and Warner Bros. Discovery will make a combined cash payment of $220 million to FuboTV. Furthermore, Disney has pledged a $145 million term loan to FuboTV, payable in 2026. A significant breakup fee of $130 million is also included, payable to FuboTV should the transaction fail to close due to regulatory hurdles.
Justin Warbrooke, Disney’s executive VP and head of corporate development, stated that the joint venture will strengthen both Hulu + Live TV and FuboTV’s offerings, providing consumers with increased choice and flexibility. He expressed confidence in FuboTV’s management and their ability to expand the business, delivering high-quality content at a competitive value. The combined subscriber base of FuboTV and Hulu + Live TV will reach 6.2 million North American customers. Additionally, FuboTV will develop a new “sports and broadcasting service” incorporating Disney’s sports and broadcast networks.
The settlement marks the conclusion of a legal battle initiated by FuboTV in February 2024. The lawsuit alleged an anti-competitive campaign by Disney, Fox, and Warner Bros. Discovery to stifle FuboTV’s growth. FuboTV had previously secured a preliminary injunction halting the launch of Venu. This joint venture now represents a significant shift in the landscape of the live TV streaming market.