- FUBOTV
- 06 January 2025 16:26:52
Source: Sharecast
The merged company, which would retain the publicly traded Fubo name, would see Disney holding a 70% ownership stake and Fubo’s management team leading operations.
Fubo said the combined entity would cater to over 6.2 million subscribers in North America, offering an expanded array of live broadcast and cable programming.
Fubo and Hulu + Live TV would remain distinct services, with Hulu + Live TV continuing as part of Disney’s broader streaming bundle, while Fubo would focus on its sports-centric offerings.
Disney’s contribution would include a new carriage agreement allowing Fubo to launch a sports and broadcasting service featuring marquee Disney channels such as ABC, ESPN, and ESPN+, alongside other premium sports content.
Both platforms would independently negotiate carriage agreements with content providers.
Fubo’s CEO David Gandler would continue to lead the company and join the board of directors, where Disney would hold the majority of seats.
“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.
“Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow.”
In resolving previous legal disputes, Fubo said it had settled litigation with Disney, ESPN, Fox and Warner Brothers Discovery.
As part of the agreement, Disney, Fox and WB Discovery would collectively pay $220m to Fubo, and Disney would provide a $145m term loan in 2026.
A termination fee of $130m had also been agreed in the event of regulatory hurdles preventing the merger’s completion.
The merger would position the new entity to be cash-flow positive immediately upon closing.
“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 at the Walt Disney Company.
“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.”
At 1117 EST (1617 GMT), shares in FuboTV were up 181.94% at $4.06, while those in the Walt Disney Company were ahead 1.27% at $112.57.
Reporting by Josh White for Sharecast.com.
