Disney has reached a deal to combine Hulu + Live TV with “sports-first” streaming service Fubo in a new joint venture, ending the latter’s antitrust lawsuit to block the Venu Sports joint streaming service from Disney, Fox, and Warner Bros. Discovery.
Disney to Merge Hulu Live TV with Fubo
The Hulu subscription video-on-demand service is not part of the deal and will stay separate. Fubo and Hulu + Live TV will have a combined 6.2 million North American subscribers, with Disney owning 70% of the service.
The brands will remain separate, and will be separately marketed and sold. In addition, this new deal will see Fubo create a new “sports and broadcasting service” featuring Disney’s sports and broadcast networks. The new carriage agreement will feature networks including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, and ESPNews, along with ESPN+.
As part of the deal, Disney, Fox, and Warner Bros. Discovery will make a cash payment to Fubo of $220 million. Disney has also committed to provide a $145 million term loan to Fubo in 2026. A “deal-breakup fee” of $130 million will be payable to the “sports-first” streaming service “under certain circumstances,” including “if the transaction fails to close due to the failure to obtain requisite regulatory approvals on the terms and conditions in the agreement.”
The deal is expected to close within the next 12-18 months.
This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD [multichannel video programming distributor] offerings and provide consumers with even more choice and flexibility.
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.
Justin Warbrooke, Executive VP and Head of Corporate Development for Disney
Fubo’s existing management team, including co-founder and CEO David Gandler, will operate the joint venture, which will also be governed by a board of directors with the majority appointed by Disney.
Fubo filed its lawsuit against Disney, Fox, and Warner Bros. Discovery in February 2024, citing that the group’s new sports streaming service violates antitrust law and “steals Fubo’s playbook.” CEO Gandler also called the trio of media companies a “sports cartel” participating in “borderline racketeering” in the press.
Two U.S. Representatives also had reservations about the joint sports venture in April 2024, demanding answers to a list of 19 questions related to the project.
The name of the joint streaming platform, Venu Sports, was announced in May 2024, with its pricing shared in August. A federal judge granted Fubo’s request to block Venu Sports in mid-August 2024, though Disney, Fox, and Warner Bros. Discovery filed their appeal to the decision in September.
This majority acquisition by Disney brings this long-running saga to an end and seemingly clears the way for Venu Sports to debut, which was originally scheduled to launch in fall 2024.
Source: Variety
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