FuboTV Acquires Hulu + Live TV from Disney for Strategic Expansion
New York, Monday, 6 January 2025.
FuboTV has acquired Hulu + Live TV from Disney for $220 million, aiming to enhance its streaming market position. Disney will own 70% of the combined entity.
Deal Structure and Financial Terms
The acquisition, announced on January 6, 2025, involves multiple financial components. Disney, FOX, and Warner Bros. Discovery will collectively provide FuboTV (NYSE: FUBO) with a cash payment of $220 million [1][2]. Additionally, Disney has committed to offering a $145 million term loan to FuboTV in 2026 [1]. To protect both parties, a termination fee of $130 million has been established if the deal fails to receive regulatory approval [1][3].
Market Impact and Subscriber Base
The merger creates a formidable player in the streaming TV market, with the combined entity boasting 6.2 million subscribers [2][5]. This strategic move positions the company to better compete with YouTube TV, which currently leads the market with over 8 million subscribers [2]. The market responded positively to the announcement, with FuboTV’s stock price surging to $4.15, representing a 155% increase [5].
Operational Structure and Management
Under the terms of the agreement, FuboTV’s existing management team, led by Co-founder and CEO David Gandler, will continue to operate the newly combined Fubo and Hulu + Live TV businesses [1][2]. The services will maintain separate branded offerings, with consumers having the choice to select either Fubo or Hulu + Live TV [4]. The deal notably includes the resolution of all previous litigation between Fubo and Disney regarding the Venu Sports venture [2][4].
Strategic Benefits and Future Outlook
This merger enables FuboTV to strengthen its position in sports streaming, where it currently offers over 55,000 sporting events [2]. The combination will allow for the development of a new sports and broadcasting service featuring Disney’s ESPN and ABC networks [4]. According to CEO David Gandler, the merger will enable the company to scale effectively, strengthen its balance sheet, and move toward positive cash flow [5].