Disney has announced plans to merge its multichannel streaming service, Hulu + Live TV, with competitor Fubo in a deal to reshape the virtual multichannel video provider (vMVPD) market. Under the agreement, Disney will hold a 70% controlling stake in the combined entity, while Fubo’s leadership, including co-founder and CEO David Gandler, will oversee operations. Disney will also appoint the majority of the board members.
The new company will retain the Fubo name and remain publicly traded. The two services will have 6.2 million subscribers, positioning the venture as a stronger competitor to YouTube TV. Hulu + Live TV and Fubo will continue as separate brands. Hulu + Live TV will remain part of Disney’s larger streaming bundle, while Fubo will manage carriage negotiations for both services independently of Disney. The agreement also ends Fubo’s legal dispute with Venu, a sports streaming service offering a slimmed-down channel bundle that includes ESPN, ABC, Fox, and other major networks. Fubo had previously obtained an injunction that paused Venu’s operations during the NFL season.
Furthermore, as part of the financial terms, Disney, Fox, and Warner Bros. Discovery will collectively pay $220 million to Fubo. Disney will provide a $145 million term loan through 2026. Should the deal fail to close under certain conditions, Fubo would receive a $130 million termination fee.
Additionally, the deal, expected to be completed within 12 to 18 months, does not include Disney’s core Hulu on-demand streaming service and focuses exclusively on Hulu + Live TV and Fubo’s vMVPD offerings. Both companies will continue to operate their respective services, but Fubo to launch a lower-cost streaming bundle centred on ESPN and ABC channels.