Disney has announced a deal with Internet pay TV streaming provider Fubo to combine Hulu + Live TV with Fubo’s operations in a joint venture. Under the deal, Fubo will drop its lawsuit over Venu, the sports-focused streaming package from Disney, Fox Corp. and Warner Bros. Discovery, to derail it.
The Hulu subscription video-on-demand service is not part of the Fubo deal and will remain separate.
Disney will own 70% of the pay-TV joint venture and Fubo will own the remaining 30%. Hulu + Live TV and Fubo will continue to market and sell their own live TV services.
In connection with the deal, Disney, Fox and Warner Bros. Discovery to make a total cash payment to Fubo of $220 million. Additionally, Disney has committed to providing a $145 million term loan to Fubo in 2026 as part of the transaction. In addition, under certain circumstances, a termination fee of $130 million will be payable to Fubo even if the transaction cannot be completed due to the failure of the transaction.
to obtain the required regulatory approvals for the terms and conditions in the agreement.
Fubo and Hulu + Live TV will have a combined 6.2 million North American subscribers. In addition, Fubo will create a new “sports and broadcasting service,” featuring Disney’s sports and broadcasting networks.
In February 2024, Fubo filed a federal antitrust lawsuit against Disney, Fox and Warner Bros. Discovery aiming to block the launch of Venu, claiming that the companies (along with Disney’s ESPN and Hulu) have waged “a years-long campaign to block the launch of Venu.” Fubo’s innovative sports-focused streaming business, resulting in significant harm to both Fubo and consumers.” Last summer, Fubo won a preliminary injunction halting the three companies’ launch of Venu.
There’s more to come