Disney and FuboTV, two prominent players in the live television streaming market, have announced a strategic combination that will reshape the competitive landscape. This deal, which includes the settlement of a significant lawsuit surrounding the planned Venu Sports platform, will see Disney acquire a 70% stake in Fubo, a publicly traded company that will retain its name and management team. The combined entity boasts a substantial subscriber base of 6.2 million North American customers across both Fubo and Hulu + Live TV. Importantly, both services will continue to operate independently post-merger, offering consumers continued choice.
Fubo CEO David Gandler highlighted the strategic benefits of the deal, emphasizing its potential to enhance consumer offerings, improve operational scale, strengthen Fubo’s financial position, and pave the way for positive cash flow. The agreement includes a $145 million term loan from Disney to Fubo, maturing in 2026, and a $130 million termination fee payable to Fubo under specific conditions.
Furthermore, a key element of the agreement is a new deal that allows Fubo to develop a new sports and broadcast streaming service incorporating Disney’s extensive portfolio of networks, including ABC, ESPN, ESPN2, ESPNU, SEC Network, ACC Network, ESPNEWS, and ESPN+. This collaboration signifies a significant expansion of Fubo’s sports programming capabilities.
The announcement also concludes the legal battle surrounding Venu Sports, a planned joint venture between Disney (ESPN), Fox, and Warner Bros. Discovery. Fubo has settled all related litigation with all three companies, receiving a $220 million payment in the process. This settlement follows a federal judge’s August ruling granting Fubo a preliminary injunction against Venu Sports and the subsequent dismissal of Venu’s motion to dismiss the lawsuit in the preceding month.
The market reacted positively to the news, with FuboTV’s stock price more than tripling in afternoon trading on the day of the announcement, while Disney’s stock experienced a modest increase. The combination of Disney’s content power and Fubo’s streaming technology promises a substantial shift in the live television streaming market.