Disney will combine its Hulu + Live TV business with Fubo and become majority owner of the resulting company in a deal that creates a major streaming player and 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.
A preliminary injunction had halted Venu’s planned debut last fall but the service will now prepare to launch, confirmed several people familiar with the situation, although there’s no date set yet.
With the media landscape in continuous evolution, the combined business of former adversaries will operate under Fubo’s publicly traded company (stock symbol FUBO) as the nation’s sixth largest pay-TV operator and be led by the existing Fubo management team. Deep-pocketed Disney will channel resources to expanded Fubo starting with an immediate $220 million cash injection at close, and a $145 million term loan available in January of 2026.
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Venu, announced with great fanfare last February, got a name and logo in May under CEO Pete Distad. The service aggregating the linear feeds from 14 sports-centric networks and streaming services of its three partners was priced at $42.99. When its planned launch was stalled by an antitrust lawsuit filed by Fubo, Venu partners tried and failed to get the case dismissed and a trial was set for October of 2025 in U.S. District Court in Manhattan.
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No more. In an SEC filing this morning, Fubo said, “the Settling Parties agreed to settle all claims asserted in the Action, including … claims concerning the defendants’ bundling or tying of television channels, defendants’ use of most-favored nations clauses, and the contemplated and previously announced Venu joint venture, and to dismiss all claims in the Action with prejudice.”
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. Both services will continue to be available as separate offerings. Hulu + Live TV will remain an entertainment focused cable replacement service, while Fubo will continue to be focused on sports and news, the platform’s co-founded and CEO Gandler said on a conference call today after the deal was announced.
The merger will to create increasingly popular skinnier bundles in sports, news and entertainment, he said.
The deal in fact amends Fubo’s carriage agreements with Disney and Fox and will create a new Sports & Broadcasting offering to include, on the Disney side, ESPN+, ABC, ESPN, ESPN2, ESPNU, SECN, ACCN and ESPNEWS.
The transaction is subject to closing conditions including approval from regulators and Fubo shareholders. Fubo is entitled to a $130 million breakup fee if it implodes, executives said on the call. Sounding elated, they touted new opportunities and fresh liquidity Disney will bring hinting at international expansion and potential deals, anticipating scale in advertising, and marketing efficiencies.
“I think one of the most valuable pieces of this is that Hulu live TV is embedded within the Hulu product, which has significant advantages, particularly around retention,” said CFO John Janedis.
“We are preparing ourselves for our growth stage,” he said.
The expanded Fubo, with $6 billion in revenue, is expected to become cash flow positive instantly.
At closing, Disney will own 70% of Fubo and Fubo shareholders will own the rest. Fubo’s existing management team, led by Gandler, will operate the newly combined 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,” Gandler said in a statement. “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.”
It was definitely a win for Fubo’s stock price which surged premarket on the news and closed Monday up 250% at $5.06. Shares of Disney and Fox ended about flat and WBD rose 2.5%.
“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.”
The new Fubo will be governed by a board of directors with the majority appointed by Disney, as well as independent directors. Gandler will serve on the board.
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