January 8 – In a streaming shake-up, Disney has acquired a majority stake in FuboTV with Hulu + Live TV to combine forces in the market.
Disney, which owns sports broadcast giant ESPN, will take a 70% stake in the new venture. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility,” said Fubo CEO David Gandler in a statement. “Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow.”
Gandler will be leading the new venture. The acquisition will let Fubo develop a news sports and broadcast service showing Disney’s sports and broadcast networks, including ABC and ESPN. Fubo streams more than 55,000 sporting events annually.
The new alliance is a sign the traditional broadcast players want to fight back against the emerging digital powers and the likes of Amazon Prime Video, YouTubeTV and Netflix. ESPN once was all-powerful with a 100 million cable and satellite subscriber base but that number has dropped to 65.3 million according to Nielsen. However, the new merger brings the combined 6.2 million subscribers between Fubo and Hulu + Live TV to the table.
Following the announcement, Fubo shares surged more than 155% to $4.15. Walt Disney shares also enjoyed a 1.1% jump.
The merger also settles a legal conflict over the Venu Sports streaming service between FuboTV, Disney, Fox, and Warner Bros. Discovery. The statement read: “In connection therewith, at signing of the Transaction, Disney, FOX and Warner Bros. Discovery will make an aggregate cash payment to Fubo of $220 million. In addition, Disney has committed to provide a $145 million term loan to Fubo in 2026 as part of the Transaction.”
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