The FuboTV app on a TV broadcast in New York, USA, on Wednesday, February 21, 2024.
Gabby Jones | Bloomberg | fake images
disney will combine its Hulu+ Dwell TV service with fubomerging two Web TV packages, the companies announced Monday.
Disney will become the majority owner of the resulting company, the publicly traded company Fubo, with a 70% stake. Fubo shareholders will own the remaining 30% of the company.
Both Hulu+ Dwell TV and Fubo are streaming services that mimic the traditional cable TV package and offer linear TV networks. Together, the streaming services have 6.2 million subscribers.
Both services will continue to be available separately to consumers once the deal closes. Hulu+ Dwell TV can be streamed through the Hulu app, as well as part of the Disney bundle that also includes Hulu, Disney+, and ESPN+.
The deal does not include streamer Hulu, known for creating authentic content like “Solely Murders within the Constructing” and “The Handmaid’s Story,” which competes with platforms like Netflix.
Fubo stock, which closed Friday at just $1.44 per share, rose as much as 170% in early trading Monday before paring some gains.
“Upon closing the deal, our company is expected to be immediately cash flow positive, which will instantly make Fubo the major player in the streaming space,” Fubo co-founder and CEO David Gandler said during a call with investors on Monday.
Fubo shares rise after Disney deal.
Specifically, under the agreement, Fubo and Disney resolved litigation related to Venu, the sports streaming service proposed by Disney, Fox and Warner Bros. Discovery.
Fubo had filed a lawsuit against Disney, Fox and WBD alleging the service would be anti-competitive, and last year a US judge temporarily blocked the launch of Venu.
When the agreement between Disney and Fubo is signed, Disney, Fox and Warner Bros. Discovery will together make a cash payment of $220 million to Fubo. Disney will also commit a $145 million term loan to Fubo in 2026. If the deal falls through, Fubo would receive a $130 million termination fee.
The combined company will be led by Fubo’s management team, including Gandler, while its new board of directors will be majority appointed by Disney.
The companies also announced Monday that Fubo and Disney signed a new carriage agreement that allows Fubo to create a new streaming and sports service featuring Disney networks.
Bloomberg reported A deal to merge the live TV streaming services was imminent earlier on Monday.
This is breaking news. Please check back for updates.
