OAN Staff James Myers
3:18pm – Monday, January 6, 2025
Disney and FuboTV on Monday announced plans to merge Hulu Live + TV and Fubo.
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With the merger, the companies will combine a virtual multichannel video programming distributor (MVPD) company that will “operate under the publicly traded name Fubo,” the companies said.
As a result, Disney will own 70% of Fubo's shares.
According to Disney and Fubo, the combination will “enhance programming packaging options that address a variety of consumer tastes at attractive price points.”
The new merger will be led by Fubo CEO David Gandler and his management team.
He described the planned merger of Fubo and Hulu Live + TV as “a win for consumers, shareholders and the entire streaming industry.”
Additionally, Disney and Fubo said the new agreement will create a “new sports and broadcast service” that will broadcast ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, and ESPN+ through a carriage agreement between the two companies. .
According to the companies, the vMVPD company will “negotiate carriage agreements with content providers independently of Disney for both Hulu + Live TV and Fubo services.”
The companies say that once the deal becomes official, consumers will still have the option to obtain Fubo and Hulu + Live TV as “separate services.”
Hulu first introduced Hulu + Live TV in 2017. Disney includes this service in its Hulu, Disney+, and ESPN+ bundle.
Fubo, on the other hand, has been available since 2015.
Fubo and Hulu + Live TV have a combined North American subscriber base of more than 6.2 million, according to Disney and Fubo.
The merger between Fubo and Hulu + Live TV is “subject to regulatory approval, Fubo stockholder approval and other customary closing conditions,” Disney and Fubo said.
The new vMVPD company is “well capitalized and expected to be cash flow positive immediately upon closing,” they said.
Fubo stock soared on Monday following the merger announcement.
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