Walt Disney to merge with Fubo: a game changer for online TV?
- Walt Disney merged its Hulu+ Live TV service with Fubo, creating a new streaming entity.
- The merger results in a company now holding 6.2 million subscribers, with Disney owning 70% of the new entity.
- This agreement strengthens both companies' market position while expanding their sports broadcasting capabilities.
In a significant move in the streaming industry, Walt Disney announced its merger with Fubo, a prominent internet TV provider, as of January 6, 2025. This strategic alliance combines Disney's Hulu+ Live TV service and Fubo's offerings, resulting in a new venture that will be operated under the Fubo company name. The ownership structure is heavily skewed in favor of Disney, which will hold a 70% stake, while the remaining 30% will be owned by Fubo shareholders. This merger brings together a substantial customer base of 6.2 million subscribers from both services, further consolidating their market position. The deal does not extend to Hulu's subscription video service, which remains separate. The two brands, Fubo and Hulu + Live TV, will continue to operate alongside each other, allowing the combined entity to leverage their respective strengths in providing live broadcast and cable networks. Fubo's CEO, David Gandler, expressed optimism about the merger, stating it enhances consumer choice and flexibility, while also strengthening Fubo's financial stability and improving cash flow. In addition to improving their service offerings, the merger allows Fubo to expand its sports programming significantly by integrating Disney's sports networks, including ESPN and ABC. Fubo is known for streaming over 55,000 sports events annually, and the access to Disney's extensive sports offerings is expected to enhance viewership and attract additional subscribers. Moreover, this agreement resolves ongoing legal disputes between Fubo and Disney regarding Venu Sports, a streaming platform being developed collaboratively by Disney, Fox, and Warner Bros. The financial community has welcomed the merger with enthusiasm, evident from a notable spike in stock prices following the announcement; Fubo's shares increased by more than 155%, while Disney’s shares also saw a moderate gain. This strategic partnership is poised to reshape the competitive landscape of online streaming, with both companies aiming to create a more robust offer for consumers. Overall, the merger of Walt Disney and Fubo represents a significant development in their respective growth trajectories and will likely set the stage for future innovations in the streaming industry.