Disney to merge Hulu + Live TV with Fubo

The deal will create the second-largest digital pay-TV provider in North America, behind only YouTube TV.

Entertainment giant Disney has announced plans to merge its Hulu + Live TV service with sports streaming platform FuboTV, creating a venture with approximately 6.2 million subscribers and $6 billion in revenue.

Disney will hold a 70% majority in the new entity, which will operate under Fubo’s publicly traded company name and will be managed by its chief executive and co-founder David Gandler.

As part of the deal, Fubo will also drop its lawsuit against Venu Sports, the sports streaming service planned by Disney, Fox, and Warner Bros Discovery. In a suit filed in US District Court, Fubo called the proposed service a “sports cartel” that violated antitrust laws.

The three companies will pay Fubo $220 million in cash to settle. Disney additionally committed to a $145 million term loan to Fubo in 2026.

“This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility,” Gandler said in a statement. “Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow.”

Hulu’s main streaming service, which offers critically acclaimed original shows such as The Handmaid’s Tale and Shōgun, is excluded from the deal.

The deal is yet to be approved by regulators and Fubo shareholders. The streaming service’s shares surged nearly 141% to $3.46 in early trading following the announcement of the merger.

Fubo’s shares dropped more than 60% in 2024 as it faced intensified competition from bigger rivals and its revenue growth slowed.

The deal will allow Fubo to create a new sports service featuring Disney’s sports and broadcast networks, including ABC, ESPN, and ESPN+. Both Fubo and Hulu Live TV will still be available to consumers as separate offerings once the deal is closed.