Disney will own 70% of Fubo after Hulu Live + TV merger

In a strategic move in the streaming industry, Disney announced plans to merge Hulu Live + TV with FuboTV on a Monday in 2023. As part of the agreement, Disney will achieve a 70% ownership stake in the resulting entity once the deal is finalized. This merger aims to create a combined virtual multichannel video programming distributor (MVPD) that is expected to enhance programming options for consumers. The new entity will operate under the Fubo publicly traded company name and will provide a broader array of programming choices at competitive prices. Fubo, which first launched in 2015, and Hulu Live TV, introduced in 2017, claim a combined total of over 6.2 million North American subscribers. The combined services will allow consumers to retain access to Fubo and Hulu Live TV as separate offerings if they prefer that option. The companies underscore that this merger will enhance consumer programming packages and better cater to diverse viewing preferences. As part of the new arrangement, Fubo will implement a Sports & Broadcast service to stream networks such as ABC, ESPN, and a variety of ESPN channels via a carriage agreement with Disney. This consolidation is believed to facilitate improved negotiations for carriage agreements between the merged company and additional content providers, giving it a stronger position in the competitive streaming landscape. The merger is contingent upon achieving necessary regulatory approvals, Fubo shareholder acceptance, and fulfilling customary closing conditions. Companies are optimistic about the merger's completion, as they anticipate that the new company will be well-capitalized and generate positive cash flow immediately upon closure of the transaction. As the streaming industry is experiencing rapid changes, this merger signifies a crucial step for both Disney and FuboTV, aiming to leverage their strengths in addressing the preferences of modern viewers.