FuboTV Inc. (NYSE: FUBO) and The Walt Disney Company (NYSE: DIS) have announced a definitive agreement to merge Disney’s Hulu + Live TV business with Fubo creating a combined virtual multichannel video programming distributor (vMVPD) company. Under the terms of the agreement, Disney will acquire a 70% ownership stake in Fubo while Fubo’s existing management team, led by Co-founder and CEO David Gandler, will continue to operate the combined entity. Both Fubo and Hulu + Live TV will remain available to consumers as separate offerings post-transaction.
The combined company anticipates realizing synergies through more flexible programming packaging, increased innovation, and expanded sales and marketing opportunities.
The merger aims to enhance consumer choice by offering a broader array of programming packages to over 6.2 million subscribers across North America. For their customers, this strategic move is expected to provide them with more attractive price points in their streaming options.
Disney also announced plans to enter into a new carriage agreement with Fubo that enables the creation of a new Sports & Broadcast service featuring premier sports and broadcast networks, including ABC, ESPN, and ESPN+.
As part of the agreement, all litigation between Fubo and Disney has been settled.
The transaction is subject to regulatory approvals, Fubo shareholder approval, and other customary closing conditions. Upon completion, the combined entity is projected to be well-capitalized and cash-flow positive, positioning it for sustained growth and profitability in the competitive streaming industry.
“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,” said Justin Warbrooke, Executive Vice President and Head of Corporate Development, The Walt Disney Company.
As of mid-day Monday, Fubo stock surged 188% to trade at $4.15 a share. Disney stock rose 1% to trade at $112 a share.
