Disney (DIS) will combine its Hulu + Live TV business with sports streamer FuboTV (FUBO) in the first major media dealmaking move of 2025.
According to a press release, Disney will control 70% of Fubo. Shareholders of the sports streamer will own the remaining 30% of the combined business, which will operate under the Fubo publicly traded company name.
In conjunction with the transaction, Fubo settled all litigation 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 surged nearly 250% on Monday on the heels of the announcement and were up over 20% in early trading on Tuesday. Disney stock closed little changed but opened around 2% higher on Tuesday.
The combination of the two businesses 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 about 100 live TV channels across sports, news, and entertainment.
On an investor call following 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 immediate cash, plus $145 million in committed financing available in January 2026 to enhance liquidity and ensure continued investments.
“We are delighted by today’s outcomes,” 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 diverse growth strategies, opening up a range of opportunities, both domestically 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 agreements with both Disney and Fox.
“Crucially, Fubo has the potential to create skinnier sports, news, and entertainment bundles 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 stage.
