Disney combines Hulu + Live TV with FuboTV

Disney ( DIS ) will combine its Hulu + Live TV business with sports streamer FuboTV ( FUBO ) in the first major media deal move of 2025.

According to one press releaseDisney will control 70% of Fubo. Shareholders in the sports streamer will own the remaining 30% of the combined company, which will operate under Fubo’s publicly traded company name.

In connection with the transaction, Fubo settled all lawsuits with Disney, Fox ( FOX ) and Warner Bros. Discovery (WBD) related to Venu Sports, the planned sports streaming platform previously announced by the trio.

Shares of Fubo rose nearly 250% on Monday on the heels of the announcement. Disney shares were little changed, while Fox and WBD shares rose 1% and 3%, respectively.

The combination of the two companies will form one of the largest digital pay-TV providers as consumers search for cable alternatives amid increased cord-cutting.

Fubo, which offers users access to live TV channels over the Internet, has primarily focused on sports and news. Hulu + Live TV, categorized as a cable replacement option – similar to YouTube TV – allows users to stream from around 100 live TV channels across sports, news and entertainment.

On an investor call after the announcement, Fubo said the combined company is expected to “become immediately cash flow positive,” with over 6.2 million subscribers in North America and over $6 billion in revenue.

The agreement will also provide Fubo with $220 million in cash immediately, plus $145 million in committed financing available in January 2026 to increase liquidity and ensure continued investment.

“We are delighted with today’s results,” said David Gandler, co-founder and CEO of Fubo, who will also run the new business. “Increased scale means we have the flexibility to pursue different growth strategies, opening up a range of opportunities, both nationally and internationally.”

Gandler added that while Fubo will continue to focus on sports and news, it will now be able to provide even more consumer options, including access to ESPN+ through amended distribution deals with both Disney and Fox.

“Crucially, Fubo has the potential to create slimmer sports, news and entertainment packages according to consumer needs,” he said, noting that Hulu + Live TV will remain an entertainment-focused cable replacement service.

Overall, Fubo’s management team said the deal will create a “very competitive and exciting environment” and that the company is now “preparing” for its growth phase.

The story continues

Last year, Fubo’s antitrust suit against Venu Sports alleged that Disney, Fox and WBD used their “iron grip” on commercially critical sports content to extract billions of dollars from distributors and consumers.

As a much smaller player, Fubo struggled with high content costs and the ability to stem subscriber churn and adequately compete in the market — hence the lawsuit.

According to Fubo’s original complaint, the media giants profited by “bundling” sports with less desirable content, forcing Fubo to broadcast “unwanted, expensive content” and preventing the company from offering the packages customers actually wanted.

This past summer, a judge temporarily blocked the launch of Venu, citing antitrust concerns. With Fubo now settling its lawsuit, the service is expected to face significantly fewer hurdles ahead of its expected launch.

The three companies first announced the joint venture last year, with a expected price of $42.99 per month. The service will bring together their respective slates of sports rights and comes as media companies face pressure from investors to scale their streaming services and achieve profitability.

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].

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