In a deal that creates a major streaming player and resolves all litigation between Fubo, Disney, Fox, and Warner Bros.
Discovery over the Venu Sports streaming joint venture—a case that was scheduled for a hearing in New York today—Disney will merge its Hulu + Live TV business with Fubo and become the majority owner of the resulting company.
Although a date has not yet been established, multiple persons familiar with the matter stated that Venu will now get ready to launch after a preliminary injunction prevented its scheduled debut last fall.
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The united company of erstwhile rivals will function under Fubo’s publicly traded company (stock symbol FUBO) and be run by the current Fubo management team as the television industry continues to change. With a $145 million term loan available in January 2026 and an immediate $220 million cash infusion at closing, the acquisition provides enhanced Fubo resources from a well-funded Disney.
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After being widely publicized in February of last year, Venu received a name and logo in May under CEO Pete Distad. At $42.99, the service combined the linear feeds from 14 sports-related networks with streaming services from its three partners. when Fubo filed an antitrust action, delaying a scheduled fall launch. A trial was scheduled for October 2025 in the U.S. District Court in Manhattan after Venu partners attempted and failed to have the lawsuit dismissed.
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Not any more. Fubo stated in an SEC filing this morning that “the Settling Parties agreed to dismiss all claims in the Action with prejudice and to settle all claims asserted in the Action, including … claims concerning the defendants’ use of most-favored nations clauses, the contemplated and previously announced Venu joint venture, and the defendants’ bundling or tying of television channels.”
According to a joint statement from Disney and Fubo, the new vMVPD company is anticipated to increase customer choice through more flexible content options, given that Fubo and Hulu + Live TV together have 6.2 million members in North America. Customers will still be able to access both services separately. According to Gandler, the merger could result in increasingly popular skinnier bundles in sports, news, and entertainment based on customer needs. Hulu + Live TV will continue to be an entertainment-focused cable replacement service, while Fubo will continue to be focused on sports and news.
In actuality, the pact modifies Fubo’s carriage agreements with Fox and Disney and will establish a new Sports & Broadcasting package that will incorporate their networks, including ESPN+, ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, and ESPNEWS on the Disney side.
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Closing criteria for the deal include regulatory and shareholder approval from Fubo. Executives stated on a call this morning following the news that Fubo will receive a $130 million breakup fee if it fails. Anticipating scale in advertising and marketing efficiencies, they sounded delighted as they praised the new chances and fresh money Disney will provide, implying international development and possible mergers.
CFO John Janedis stated, “I believe that one of the most beneficial aspects of this is that Hulu live TV is integrated into the Hulu product, which has major benefits, especially around retention.”
He declared, “We are getting ready for our growth stage.”
With $6 billion in revenue, the larger Fubo should immediately turn a profit.
Disney will ultimately acquire 70% of Fubo, with the remaining shares going to Fubo stockholders. Gandler and the rest of Fubo’s current management team will run the newly merged companies.
Gandler stated, “We are excited to work with Disney to build a consumer-first streaming business that combines the strengths of the Fubo and Hulu + Live TV brands.” “With this combination, we can fulfill our commitment to give customers more flexibility and choice. This arrangement also strengthens Fubo’s balance sheet, enables us to scale efficiently, and puts us in a position to generate positive cash flow. Customers, our shareholders, and the streaming sector as a whole all benefit.
Fubo’s stock price, which jumped more than 200% before the market opened to roughly $4.40, was undoubtedly victorious. Disney, Fox, and WBD shares are all slightly higher.
According to Disney EVP and head of Corporate Development Justin Warbrooke, “this combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers even more choice and flexibility.” “We are confident in the Fubo management team’s ability to expand the company by providing subscribers with high-quality offerings that offer great value and the content they desire.”
A board of directors, comprising independent members and a majority nominated by Disney, will oversee the new Fubo. Gandler is going to be a board member.
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