Disney and Fubo have announced their agreement to merge Hulu + Live TV with FuboTV, a move set to shake up the digital pay-TV industry. The merger, which will see Disney owning 70% of the combined entity and Fubo retaining the remaining 30%, creates a new powerhouse with over six million subscribers, making it the second-largest digital pay-TV provider, behind only YouTube TV.
A Strategic Merger for the Streaming Market
The deal involves Hulu + Live TV but does not extend to the traditional Hulu subscription. Despite combining the two services, both Hulu + Live TV and FuboTV will continue to operate independently under the Fubo umbrella. However, the new company will manage its content negotiations without Disney’s direct involvement, signaling a shift in control over content partnerships.
Fubo’s New Sports-Centric Streaming Service
As part of the merger, Fubo plans to launch a new live-streaming service dedicated exclusively to sports, which will utilize Disney’s expansive sports network assets, including ABC and ESPN. This move is aimed at strengthening Fubo’s position in the highly competitive sports streaming market. Additionally, the merger will bring an end to Fubo’s antitrust lawsuit related to Venu Sports, a pending sports-focused service from Disney, Fox, and Warner Bros. Discovery.
Venu Sports Could Be Back on Track
Venu Sports, initially delayed due to legal challenges, may now see a revival under the new partnership. The service, which aims to stream content from Disney, ESPN, Fox, and Warner Bros. Discovery, was expected to launch last fall but faced setbacks due to Fubo’s lawsuit. The merger paves the way for the potential launch of Venu Sports in the near future, though details on its timeline remain unclear.
Financial Terms and Regulatory Approvals
In addition to the merger, Fubo will gain new distribution rights, including a bundle of ESPN and ABC content. The deal also includes significant financial support: Disney, Fox, and Warner Bros. Discovery will contribute $220 million, with Disney providing an additional $145 million loan to Fubo. The merger is slated to close within the next 12 to 18 months, pending regulatory approval. If the deal falls through, Disney will owe Fubo $130 million.
For more details, read the original article on Engadget.