Disney and Fubo join forces, reshaping the pay TV landscape

In a major development in the streaming market, Disney’s Hulu + Live TV service and Fubo are set to merge, creating one of the largest pay TV providers in the United States. This merger was announced on January 5, 2025, and it comes as both companies aim to enhance their offerings in a competitive industry. With the merger, Disney will hold a 70% stake in Fubo, while the current management team at Fubo, led by co-founder David Gandler, will continue to operate the combined companies. The ramifications of this deal extend beyond mere ownership percentages. The new entity will amass a substantial subscriber base of approximately 6.2 million, ranking it as the second-largest streaming pay TV provider, only surpassed by YouTube TV. As part of this agreement, Fubo agreed to drop its lawsuit against Venu Sports, a joint venture involving Disney, Fox Corp, and Warner Bros. Discovery that had been previously halted by Fubo in an effort to pave the way for a smoother launch. Financially, the merger involves significant investment from Disney, Fox, and Warner Bros. Discovery, who together will pay Fubo $220 million, alongside a $145 million loan provided by Disney up to 2026. This financial backing aims to bolster Fubo's operations as they integrate with Hulu + Live TV, as well as allow for the development of a new Sports & Broadcast service that will feature various Disney sports networks. The strategic collaboration emphasizes the companies' commitment to delivering consumer-centric streaming services, which they believe will provide users with more choices and flexibility. David Gandler expressed excitement over this venture, noting the extensive enhancements they can offer to consumers in the current landscape of media consumption. As both platforms will continue to operate through their respective apps, subscribers will have the opportunity to access content from both services without disruption, ensuring that user experience remains a top priority.