Disney is integrating Hulu + Live TV into Fubo
The Walt Disney Co. said Wednesday it has closed its deal to acquire a majority stake in FuboTV and quickly integrated its Hulu + Live TV business with the sports-focused operation.
The union has created the country’s sixth-largest pay-TV service with nearly 6 million domestic subscribers.
Financial terms were not disclosed.
Similar to competitors DirecTV, YouTube TV and Charter Spectrum, Hulu + Live TV and Fubo distribute traditional channels, including broadcast channels ABC and CBS and cable channels Fox News, Bravo and ESPN.
The combined company will be overseen by a nine-member board of directors led by Brad Bird, former president of Walt Disney International. The company will continue to offer Fubo and Hulu + Live TV as separate services available through their respective apps.
Disney’s investment plans were announced in January, after the smaller Fubo company filed a lawsuit against Disney and two other media companies over their plans to launch a high-profile streaming joint venture, Venu Sports. Fubo argued that the collaboration between Disney, Fox Corp. and Warner Bros. Discovery was a “sports cartel” that would crush its business.
The judge agreed based on antitrust concerns, blocking further development of Venu.
Disney’s deal to acquire 70% of New York-based Fubo brought that lawsuit to an end.
The combined business will be led by Fubo CEO David Gandler, who co-founded the service, and Fubo’s management team.
“Since founding Fubo a decade ago, our vision has always been to build a consumer-first streaming platform defined by innovation and value,” Gandler said in a statement. “Together with Disney, we are creating a more flexible streaming ecosystem that gives consumers greater choice, while increasing profitability and sustainable growth.”
His company will have access to a $145 million term loan that Disney has agreed to provide. Fubo’s advertising sales team will join Disney’s sales organization.
The company’s shares will continue to be publicly traded under the ticker FUBO. Fubo’s current shareholders represent about 30% of the company. Shares rose 1.4% to $3.69