Disney and Fubo have reached an agreement to merge Hulu + Live TV with the FuboTV companies . This creates a new company in which Disney owns 70 percent and Fubo owns the remaining 30 percent. After the merger, the service will have six million subscribers, making it the second largest digital pay-TV provider after YouTube TV.
This offer only includes Hulu + Live TV and does not include the traditional Hulu subscription. . The combined company will continue to operate under Fubo, with current management remaining in place, although both FuboTV and Hulu + Live TV will continue to stream as separate entities. The new company will also negotiate carriage contracts with content providers without Disney’s help.
Fubo plans to create a new live streaming service dedicated solely to sports that will leverage Disney’s contracts and broadcast networks such as ABC and ESPN. Under this Agreement, Fubo will release all legal claims against the Company with respect to Venu Sports.
Venu is a which airs content from Disney/ESPN, Warner Bros. Discovery and Fox. The multi-company streamer was supposed to launch last fall, but due to one . A hearing was scheduled for January 6th, so this merger announcement is certainly well-timed.
Today’s deal means Venu Sports could be back soon. This was announced by an unnamed source The Hollywood Reporter but we don’t know if and when it will be available.
The agreement also includes new distribution rights between Fubo and Disney, allowing Fubo to offer a package around ESPN and ABC. Additionally, Disney, Fox and Warner Bros. Discovery will pay Fubo $220 million, with Disney lending the company an additional $145 million.
Subject to regulatory approval, the merger is expected to be completed within the next 12 to 18 months. The contract contains a clause that requires Disney to pay Fubo $130 million if the transaction cannot be completed for various reasons.
