Disney will combine its Hulu + Live TV business with Fubo and become majority owner of the resulting company in a deal that settles all litigation between Fubo, Disney, Fox and Warner Bros. Discovery over the Venu sports streaming joint venture, a case that was set for a hearing in New York today.
The combined business, creating a new live streaming company, will operate under the Fubo publicly traded company name led by the existing Fubo management team. The deal will provide the combined company with the resources and support of Disney starting with an immediate $220 million cash injection at close and a $145 million term loan available in January of 2026.
Fubo shares surged more than 200% in premarket trading to about $4.40.
Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings.
With a combined 6.2 million North American subscribers between Fubo and Hulu + Live TV, the new vMVPD company is expected to enhance consumer choice through more flexible programming offerings, Disney and Fubo said in a joint release.
Fubo is amending carriage agreements with Disney and Fox and will create a new Sports & Broadcasting offering to include their networks as well as ESPN+.
The transaction is subject to closing conditions including approval from regualtors and Fubo shareholders.
At closing, Disney will own 70% of Fubo. Fubo’s existing management team, led by Fubo co-founder and CEO David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses.
“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. It’s a win for consumers, our shareholders, and the entire streaming industry.”
“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, Disney EVP and Head of Corporate Development. “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.”
In connection with the deal, Disney will enter into a new carriage agreement with Fubo that will allow Fubo to create a new Sports & Broadcast service, featuring Disney’s premier sports and broadcast networks including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.
The new Fubo will be governed by a board of directors with the majority appointed by Disney, as well as independent directors. Gandler will also serve on the board of directors continuing as Fubo’s CEO.
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