Disney is set to combine its Hulu + Live TV offering with Fubo, the companies announced on Monday, effectively ending their litigation over the planned combined sports streaming offering Venu from Disney, Fox and Warner Bros. Discovery.
Under the definitive agreement, Disney will own 70% of Fubo, which will in turn create a new sports and broadcasting service. Together, Hulu + Live TV and Fubo host 6.2 million North American subscribers.
Fubo’s current management team will remain in place, and both services will continue to exist as separate entities.
Disney announced that all litigation between the company and Fubo has been settled, and Fubo has also settled its antitrust lawsuit against Fox and Warner Bros. Discovery, which were also in the Venu Sports joint venture. Once the Hulu Live + TV and Fubo merger is complete, Disney, Fox and WBD will pay Fubo $220 million in total, with Disney providing an additional $145 million term loan to Fubo in 2026.
The initial suit from Fubo alleged that Disney, Fox and WBD engaged in a years-long campaign of anticompetitive practices, with the upcoming sports streaming venture being the latest example.
“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,” Fubo co-founder and CEO David Gandler said of the merger. “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.”
“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,” Justin Warbrooke, Walt Disney Company EVP and head of Corporate Development, 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.”
Venu Sports was initially intended to launch at $42.99 per month last fall, but Fubo’s preliminary injunction blocked that from happening. It would have featured content from 15 sports channels and from all the major sports leagues and top college conferences.
Disney noted in Monday’s press release that Fubo’s new sports service will similarly feature content from ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS and ESPN+.
Fubo shares are up 131% as of Monday morning.
