Disney folds Hulu + Live TV into Fubo
Walt Disney Co. said Wednesday that it has finalized its deal to acquire a majority stake in FuboTV and quickly combined its Hulu + Live TV business with the sports-focused business.
The union creates the sixth pay television service in the country, with nearly 6 million national subscribers.
Financial terms were not disclosed.
Like competitors DirecTV, YouTube TV and Charter Spectrum, Hulu + Live TV and Fubo distribute traditional channels, including ABC, 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 chairman 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 much smaller company Fubo sued 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 destroy its business.
A judge agreed based on antitrust concerns, blocking further development of Venu.
Disney’s deal to acquire 70% of New York-based Fubo ended that dispute.
The combined company will be led by Fubo CEO David Gandler, co-founder of the service, and the Fubo management team.
“Since founding Fubo a decade ago, our vision has always been to build a consumer-focused streaming platform defined by innovation and value,” Gandler said in a statement. “Together with Disney, we are creating a more flexible streaming ecosystem that provides consumers with greater choice, while driving 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 symbol FUBO. Existing Fubo shareholders represent approximately 30% of the company. Shares were up slightly at $3.95 at midday.
