Walt Disney Co. has announced a merger between its Hulu + Live TV business and FuboTV, creating the second-largest online pay-TV provider in North America, behind YouTube TV. The combined entity will generate an estimated $6 billion in revenue with 6.2 million subscribers, offering internet-based cable TV packages as an alternative to traditional cable or satellite services. Disney will hold a 70% stake in the joint venture, which will be led by Fubo CEO and co-founder David Gandler. Notably, the deal excludes Hulu’s core video-streaming service.
The agreement also resolves ongoing litigation between FuboTV and Disney, Fox Corp, and Warner Bros Discovery regarding their planned sports streaming service, Venu. Fubo had accused the companies of anti-competitive practices, including bundling lesser-watched networks to secure rights to live sports. As part of the settlement, the companies will pay Fubo $220 million, and Disney has committed to a $145 million term loan for Fubo in 2026. The U.S. District Court had previously issued an injunction delaying Venu’s launch, which the merger now addresses.
Fubo and Hulu + Live TV will remain available as separate offerings post-merger, with distinct focuses: Fubo on sports and news and Hulu + Live TV as an entertainment-based cable replacement. However, Disney has also entered into a licensing agreement allowing Fubo to create a sports-centric service featuring Disney’s broadcast and sports networks, including ABC and ESPN. Analysts see this deal as a strategic move by Disney to focus on its broader streaming ambitions, with plans to eventually transition away from pay-TV operations.
Wall Street reacted positively to the news. Fubo shares surged 260% after the announcement, while Disney shares saw a modest rise. Investment analysts noted the deal clears a significant hurdle for Disney’s planned sports streaming venture with Fox and Warner Bros Discovery, though challenges remain in making Venu Sports operational. Meanwhile, the new joint venture signals Disney’s intent to expand its streaming footprint while reshaping its pay-TV strategy.