Disney and Fubo have reached an agreement to merge Hulu + Live TV with FuboTV, the companies . This will create a new entity that Disney owns 70 percent of, with Fubo taking up the remaining 30 percent. Once combined, the service will boast over six million subscribers, making it the second-biggest digital pay-TV provider behind YouTube TV.
This deal only includes Hulu + Live TV, and not the traditional Hulu subscription, . The combined business will operate under Fubo, with current management staying on, though both FuboTV and Hulu + Live TV will continue to stream as separate entities. The new business will also negotiate carriage agreements with content providers without help from Disney.
Fubo plans on creating a new live streaming service dedicated exclusively to sports, which will leverage Disney’s contracts and broadcast networks like ABC and ESPN. As part of this deal, Fubo will drop all legal claims against the company regarding Venu Sports.
Venu is a that will air content from Disney/ESPN, Warner Bros. Discovery and Fox. The multi-company streamer was supposed to launch last fall, but due to an . A hearing was scheduled for January 6, so this merger announcement certainly has auspicious timing.
Today’s deal means that Venu Sports could once again be coming soon. An unnamed source told The Hollywood Reporter , but we don’t know if or when it will become available.
The agreement also includes new distribution rights between Fubo and Disney, in which the former will be allowed to offer a bundle built around ESPN and ABC. Additionally, Disney, Fox and Warner Bros. Discovery will pay Fubo $220 million, with Disney loaning the company an additional $145 million.
The merger is expected to be completed within the next 12 to 18 months, pending regulatory approval. There’s a clause in the contract that mandates Disney pay Fubo $130 million if the transaction fails to close for any number of reasons.
