Disney is shaking up the streaming industry with a bold new partnership. The company announced it will merge its Hulu + Live TV service with sports streaming platform Fubo. Disney will own 70% of the new entity, creating a combined subscriber base of 6.2 million and positioning it as the second-largest vMVPD in North America, just behind YouTube TV.
Fubo CEO and co-founder David Gandler will lead the new business, which will operate under Fubo’s name on the New York Stock Exchange. Both Hulu + Live TV and Fubo will remain available as standalone services, while the separate Hulu on-demand platform is not part of the deal. The merger still requires regulatory approval before it can move forward.
Disney’s partnership with Fubo includes the launch of a new Sports & Broadcast service featuring ESPN, ABC, and other Disney sports networks. Fubo’s subscribers will also continue to access its app, which streams over 55,000 sporting events each year. Meanwhile, Hulu + Live TV will remain part of Disney’s streaming bundle alongside Disney+ and ESPN+.
Resolving the Venu Sports Dispute
This deal is also a truce in the ongoing legal battle over the Venu Sports streaming platform. Fubo had filed an antitrust lawsuit against Disney, Fox, and Warner Bros. Discovery, claiming the companies were attempting to monopolize the sports streaming market. A judge granted Fubo an injunction against Venu Sports earlier this year, delaying its launch. As part of the merger, Fubo has agreed to drop the lawsuit, allowing Venu Sports to move forward.
To settle the dispute, Disney, Fox, and Warner Bros. Discovery will pay Fubo $220 million. Disney will also provide a $145 million loan to Fubo in 2026. A $130 million termination fee is included in the agreement in case the deal collapses. These financial terms give Fubo the resources to expand and stabilize its business.
David Gandler called the merger a win for consumers and shareholders alike. “This partnership lets us combine the strengths of both brands to offer greater choice and flexibility,” he said. Disney echoed the sentiment, expressing confidence in Fubo’s ability to grow the business and deliver value to subscribers.
With this move, Disney strengthens its streaming portfolio and takes a major step toward resolving competition concerns in the sports streaming space. The combined service is set to rival YouTube TV while reshaping how fans watch their favorite teams.
Featured Image courtesy of Drew Angerer/Getty Images
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