Disney (DIS) will combine its Hulu + Live TV business with sports streamer FuboTV (FUBO) in the first major media deal of 2025.
According to one press releaseDisney will control 70% of Fubo. Shareholders of the sports streamer will own the remaining 30% of the combined company, which will operate under the publicly traded company name Fubo.
In connection with the transaction, Fubo settled all lawsuits with Disney, Fox (FOX) and Warner Bros. Discovery (WBD) regarding Venu Sports, the planned sports streaming platform previously announced by the trio.
Shares of Fubo jumped nearly 250% on Monday following the announcement and were up more than 20% in early trading on Tuesday. Disney shares closed little changed, but opened around 2% on Tuesday.
The combination of the two companies will create one of the largest providers of digital pay TV as consumers look for cable alternatives amid increasing cord-cutting.
Fubo, which offers users access to live TV channels via the Internet, has focused mainly on sports and news. Categorized as a cable replacement option – similar to YouTube TV – Hulu + Live TV allows users to stream from approximately 100 live TV channels for sports, news and entertainment.
During an investor call following the announcement, Fubo said the combined company is expected to “immediately become cash flow positive,” with more than 6.2 million subscribers in North America and revenue of more than $6 billion.
The agreement will also provide Fubo with $220 million in immediate cash, plus $145 million in committed financing that will be available in January 2026 to improve liquidity and ensure continued investment.
“We are thrilled with today’s results,” said David Gandler, co-founder and CEO of Fubo, who will also lead the new company. “Greater scale means we have the flexibility to pursue diverse growth strategies, creating a range of opportunities both domestically and internationally.”
Gandler added that while Fubo will continue to focus on sports and news, it will now be able to offer even more consumer options, including access to ESPN+ through amended distribution agreements with both Disney and Fox.
“Crucially, Fubo has the potential to create thinner sports, news and entertainment bundles based on consumer needs,” he said, noting that Hulu + Live TV will remain an entertainment-focused cable replacement service.
Overall, Fubo’s management team said the deal will create a “highly competitive and exciting environment” and that the company is now “preparing” for its growth phase.