FuboTV and The Walt Disney Company announced today that they have entered into a definitive agreement for Disney to combine its Hulu + Live TV business with Fubo, forming a combined virtual MVPD company. This deal will enhance consumer choice by making a broad set of programming offerings available. It is subject to regulatory approvals, Fubo shareholder approval, and the satisfaction of other customary closing conditions.
Under the terms of the deal, Disney will own 70% of Fubo at closing. And Fubo’s existing management team, led by Fubo Co-founder and CEO David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses.
Fubo and Hulu + Live TV each allow customers to stream a broad array of live broadcasts and cable networks on their connected TVs, mobile phones, tablets, and other internet-connected devices. And combining the businesses of Fubo and Hulu + Live TV — which have over 6.2 million subscribers in North America — will facilitate an enhanced choice of programming packages and address a variety of consumer preferences at attractive price points.
In connection with the deal, Disney will enter into a new carriage agreement with Fubo that will enable Fubo to create a new Sports & Broadcast service featuring Disney’s premier sports and broadcast networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.
After closing, Fubo and Hulu + Live TV will remain available to consumers as separate offerings. Hulu + Live TV, a leader in entertainment programming, will continue to be streamed in the Hulu app and be offered as part of the attractive bundle with Hulu, Disney+, and ESPN+. Fubo, which streams over 55,000 live sporting events annually, will continue serving its subscribers in the Fubo app.
The combined company will negotiate carriage agreements with content providers independently of Disney for the Hulu + Live TV and Fubo services.
After the deal’s closing, Fubo will be governed by a board of directors, with the majority appointed by Disney and independent directors. Gandler will also serve on the board of directors as Fubo’s CEO. And the deal will provide the combined company with the resources and support of Disney, and the existing Fubo management team will continue to focus on driving growth and profitability.
This deal will also enable Fubo shareholders to benefit from the combination’s synergies. The combined business will realize synergies through more flexible programming packaging to cater to all audiences, better innovation, and sales and marketing opportunities.
The combined company is expected to be well-capitalized and cash-flow-positive immediately after closing the deal.
In connection with the deal, Fubo has settled all litigation with Disney and ESPN related to Venu Sports, the previously announced sports streaming platform planned by ESPN, FOX and Warner Bros. Discovery. Fubo has also settled all litigation with FOX and Warner Bros. Discovery.
Also in connection, at the signing of the deal, Disney, FOX, and Warner Bros. Discovery will make an aggregate cash payment to Fubo of $220 million. And Disney has committed to provide a $145 million term loan to Fubo in 2026 as part of the Transaction.
Plus, a termination fee of $130 million will be payable to Fubo under certain circumstances, including if the Transaction fails to close due to the failure to obtain requisite regulatory approvals on the terms and conditions set forth in the definitive agreement.
Wells Fargo is serving as the lead financial advisor to Fubo and Evercore is also serving as financial advisor to Fubo. Latham & Watkins is serving as legal advisor to Fubo in connection with the deal, and Kellogg Hansen represented Fubo in its antitrust litigation. Centerview Partners is serving as financial advisor to The Walt Disney Company and Cravath, Swaine & Moore is serving as legal advisor to The Walt Disney Company.
KEY QUOTES:
“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. 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.”
– David Gandler
“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. 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.”
– Justin Warbrooke, Executive Vice President and Head of Corporate Development, The Walt Disney Company
