Disney (SAY) will combine its Hulu + Live TV business with sports streamer FuboTV (FUBO) in the first a major agreement with the media of 2025.
According to a press releaseDisney will control 70% of Fubo. Shareholders of the sports streamer will own the remaining 30% of the combined company, which will operate under the publicly traded company name Fubo.
As part of the transaction, Fubo settled all disputes with Disney, Fox (FOX), and Warner Bros. Discovery (WBD) linked to Venu Sports, the sports streaming platform project previously announced by the trio.
Fubo shares jumped nearly 250% on Monday following the announcement. Disney shares were little changed while Fox and WBD shares rose about 1% and 3%, respectively.
The combination of the two companies will form one of the largest providers of digital pay TV, as consumers seek alternatives to cable amid increasing cord cuts.
Fubo, which provides users with access to live TV channels over the Internet, has focused primarily on sports and news. Hulu + Live TV, classified as a cable replacement option – similar to YouTube TV – allows users to stream around 100 live TV channels across sports, news and entertainment.
In an investor call following the announcement, Fubo said the combined company is expected to “immediately become cash flow positive,” with more than 6.2 million subscribers in North America and more than $6 billion in revenue.
The deal will also provide Fubo with $220 million in immediate liquidity, as well as $145 million in committed financing available in January 2026 to improve liquidity and ensure continued investments.
“We are thrilled with today’s results,” said David Gandler, co-founder and CEO of Fubo, who will also lead the new company. “Greater scale means we have the flexibility to pursue various growth strategies, opening up a range of opportunities, both domestically and internationally.”
Gandler added that while Fubo will continue to focus on sports and news, it will now be able to offer even more options to consumers, including access to ESPN+ through amended distribution agreements with Disney and Fox.
“Fubo has the potential to create slimmer sports, news and entertainment bundles based on consumer needs,” he said, noting that Hulu + Live TV will remain a cable replacement service focused on entertainment.
Overall, Fubo’s management team said the deal would create a “very competitive and exciting environment” and that the company was now “preparing” for its growth phase.
