Disney Merges Hulu + Live TV with FuboTV: A New Era in Sports Streaming

Disney is merging its Hulu + Live TV business with FuboTV to form the second-largest online pay-TV service in North America. The deal, excluding Hulu's main video-streaming business, targets sports streaming expansion. Fubo's shares surged after the announcement, despite past losses and legal challenges.

In a strategic move, Walt Disney Co announced the merger of its Hulu + Live TV service with FuboTV, aiming to bolster its sports streaming capabilities. This merger positions the combined entity as the second-largest online pay-TV provider in North America, second only to YouTube TV, boasting approximately $6 billion in revenue.

Disney will hold a 70% majority in the new venture, although the deal notably excludes Hulu's core video-streaming business. Investors reacted positively, with Fubo's stock surging over 260%. The collaboration signifies Disney's intent to capitalize on the growing demand for sports-centric content, despite previous legal disputes and competition challenges.

This agreement also resolves a lawsuit involving Fubo and Venu Sports—the latter a joint project by Disney, Fox, and Warner Bros Discovery. As part of the settlement, Disney committed to a $145 million term loan to Fubo in 2026. Disney and Fubo will remain separate offerings, with specific market focuses post-merger.

(With inputs from agencies.)