Disney’s Hulu + Live TV service and Fubo to merge in surprise deal ending Venu lawsuit
By Liam Reilly, CNN
New York (CNN) — Disney’s Hulu + Live TV service and Fubo will merge, creating one of the country’s largest pay TV providers, the companies announced Monday in a surprise deal that will potentially allow the Venu Sports streaming service to move forward.
Under the terms of the agreement, Disney will own 70% of Fubo while the TV streaming service’s current management team will operate the newly combined entities, led by Fubo co-founder and chief executive David Gandler. The combined streaming cable service will have 6.2 million subscribers, making it the second largest streaming pay TV provider, behind only YouTube TV.
As part of the deal, Fubo will drop its lawsuit against Venu Sports, the streaming joint venture between Disney, Fox Corp, and CNN’s parent Warner Bros. Discovery, blocking the launch of the long-delayed service. The companies said Disney, Fox and WBD will pay Fubo $220 million, and Disney will provide a $145 million loan to Fubo through 2026.
“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,” said Gandler. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility.”
Shares of Fubo soared more than 200% on the news Monday morning.
The deal, which does not include the Hulu subscription service, will see Disney ink a new carriage deal with Fubo, allowing the company to create a new Sports & Broadcast service that features Disney’s sports and broadcast networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.
Under the deal, Fubo and Hulu + Live TV will remain available to subscribers via their respective platforms, with Hulu + Live TV available on the Hulu app and remaining a part of the Hulu, Disney+ and ESPN+ bundle. Fubo will likewise retain its app.
Last year, Fubo sued Disney, Fox Corp, and WBD, blocking the trio’s joint sports streaming venture, Venu Sports, which was slated to launch in August 2024. A hearing in the case was scheduled for later on Monday.
The Venu Sports service, set to be priced at $42.99 per month, would offer cord-cutters access to a host of sporting events drawing from each of the media companies’ portfolios, including the NFL, NBA, MLB, NHL, tennis, soccer, golf, NASCAR races and UFC matches.
While WBD has put its existing live sports offerings on its Max streaming service, Disney plans to also launch a standalone direct-to-consumer ESPN streaming service later this year.
The-CNN-Wire
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