FuboTV (NYSE:FUBO) and The Walt Disney Company (NYSE:DIS) said Monday they will merge Disney’s Hulu + Live TV business with Fubo, creating a new venture that will cater to over 6.2M customers in North America.
FUBO shares are up more than 200% in NYSE premarket trading.
Fubo’s existing management team, led by CEO David Gandler, will operate the new business in which Disney will hold a 70% controlling stake.
As part of the deal, Fubo has agreed to settle all litigation with Disney and ESPN related to Venu Sports, and also settled all litigation with Fox (FOX) and Warner Bros. Discovery (WBD). Disney, Fox, and Warner Bros. Discovery will pay Fubo $220M to settle their existing lawsuits.
Disney has also committed to providing a $145M term loan to Fubo in 2026 as part of the deal.
The deal will include a new carriage agreement in which Fubo will create a new sports & broadcast service, that will feature Disney’s sports and broadcast networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, and ESPNEWS, as well as ESPN+, the parties said.
The combined company will negotiate carriage agreements with content providers for both Hulu + Live TV and Fubo services independently from Disney, the companies said.
Both Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings post-closing.
The new entity is expected to be “well-capitalized and cash-flow positive” post deal closing, the companies said.
The deal also includes a termination fee of $130M payable to Fubo if the transaction fails under certain circumstances.
