Will Disney’s Hulu+ Live TV and Fubo Merge help Customers?

Walt Disney announced on Jan. 6, 2025, that they have agreed to combine their Hulu+ Live TV business with Fubo to form an MVPD company, subject to regulatory and Fubo shareholder approvals. The Hulu & Fubo merger will give customers a broader set of shows, movies, and other programming offerings to choose from. 

Together, Fubo and Hulu + Live TV have more than 6.2 million subscribers in North America. It’s projected that the combined company after the deal will be well-capitalized and cash-flow positive immediately. 

How will this work?

1. Disney will own about 70% of Fubo. 
2. Customers can stream live broadcasts and cable networks at attractive price points on their connected mobile phones, tablets, TVs, and other internet-connected devices. 
3. Fubo and Hulu + Live TV will be available to customers as separate offerings even after the deal is made. Hulu + Live TV will continue to be available in the Hulu app and it will be offered as a part of the Hulu, Disney+, and ESPN+ bundle. Fubo will be available in its own Fubo app. 
4. Fubo’s current management team, led by Co-founder and CEO David Gandler, will oversee the new Fubo and Hulu + Live TV businesses.
5. After the Hulu & Fubo merger is done, Disney will appoint the majority of the directors who will be in charge of overseeing Fubo. Gandler will be a part of this board of directors and will continue to be Fubo’s CEO. 
6. Carriage agreements will be negotiated independently from Disney with the content providers for both Hulu + Live TV as well as Fubo services. 
7. At the signing of the deal Disney, FOX, and Warner Bros. Discovery will make an aggregate cash payment to Fubo of $220 million. 
8. Disney will provide a $145 million term loan to Fubo in 2026 as part of the deal, and a $130 million termination fee will be payable to Fubo under some circumstances. This includes if the Hulu & Fubo merger doesn’t get closed because regulatory approvals on the terms and conditions given in the agreement aren’t fulfilled. 

Along with this, Disney will also enter into a carriage agreement with Fubo that will allow the latter to create a Sports and broadcast service featuring Disney’s premier sports and broadcast networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, and ESPN+.

Fubo has also settled all litigation with ESPN and Disney in relation to Venu Sports, a sports streaming platform, which was previously announced to be in conjunction with ESPN, FOX, and Warner Bros. Discovery. 

What are the Disney and Fubo Bosses Saying About this?

Co-founder and CEO David Gandler said in a press release, “We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands.”

He also explained, “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet, and positions us for positive cash flow. It’s a win for consumers, our shareholders, and the entire streaming industry.”

Justin Warbrooke, the Executive Vice President and Head of Corporate Development of The Walt Disney Company, reiterated Gandler’s words and said, “This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility.”

He also added, “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”