In an unexpected turn of events, Disney and Fubo have agreed a new deal which will result in the Hulu Live TV and Fubo live TV services joining forces and operating through a single business.
Disney will own 70% of the combined business and Fubo the remaining 30%. The new business will continue to be operated by Fubo’s existing management team, led by Fubo Co-founder and CEO David Gandler.
“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” said Gandler. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow. It’s a win for consumers, our shareholders, and the entire streaming industry.”
According to the announcement, the combining of the two services under the same umbrella will result in a total of 6.2 million North American subscribers. However, the two live TV services will continue to operate independently, offering consumers the option to sign up to their preferred live TV streaming service.
“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility,” said Justin Warbrooke, Executive Vice President and Head of Corporate Development, The Walt Disney Company. “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”
The deal follows the major fallout last year between Fubo and Disney, Fox and Warner Bros. Discovery over the launch of their Venu Sports joint venture. Venu Sports has yet to launch and Fubo proved to be one of the driving forces in stopping the service from launching so far.
The deal is still subject to regulatory and shareholder approval.
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