Disney’s Hulu + Live TV and Fubo Announce Merger, Ending Venu Sports Lawsuit
In a surprising move, Disney’s Hulu + Live TV service and streaming platform Fubo have announced a merger, creating one of the largest pay-TV streaming providers in the U.S. The combined entity will boast 6.2 million subscribers, positioning it as the second-largest streaming pay-TV service, trailing only YouTube TV.
As part of the agreement, Disney will hold a 70% ownership stake in Fubo, while the platform’s co-founder and CEO, David Gandler, will lead the newly merged company. The deal excludes Hulu’s standalone subscription service, which will remain a separate entity.
Financial Settlement and Venu Sports
The merger also resolves a legal dispute involving Fubo and the Venu Sports streaming venture, a joint project by Disney, Fox Corporation, and Warner Bros. Discovery (WBD). As part of the settlement, Fubo will drop its lawsuit blocking Venu Sports’ launch. In return, Disney, Fox, and WBD will pay Fubo $220 million, and Disney will provide a $145 million loan to Fubo, repayable through 2026.
This agreement paves the way for Venu Sports to proceed with its plans to launch a $42.99-per-month streaming service offering extensive live sports coverage, including NFL, NBA, MLB, NHL, tennis, and more.
New Offerings and Platform Integration
The merger will introduce a revamped Sports & Broadcast service featuring Disney-owned networks such as ABC, ESPN, ESPNU, and ESPN+. Fubo and Hulu + Live TV will remain available through their respective apps, with Hulu + Live TV continuing as part of the Disney+, ESPN+, and Hulu bundle.
“This merger allows us to combine the strengths of Fubo and Hulu + Live TV to deliver more choice and flexibility for consumers,” said Gandler.
Industry Implications
The deal has caused Fubo’s stock to soar by over 200% and reshaped the competitive streaming landscape. With WBD already hosting sports on its Max streaming service and Disney planning a standalone ESPN streaming platform later this year, the merger reflects intensifying efforts by media giants to dominate the sports streaming market.
This collaboration is set to expand options for cord-cutters while consolidating the presence of Hulu + Live TV and Fubo in the growing world of live-streaming television.
