• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Disney to combine its Hulu+ Live TV with streamer Fubo
Editor's Pick

Disney to combine its Hulu+ Live TV with streamer Fubo

by January 6, 2025
by January 6, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Disney will combine its Hulu+ Live TV service with Fubo, merging together two internet TV bundles, the companies announced on Monday.

Disney will become majority owner of the resulting company — the publicly traded Fubo company — with a 70% ownership stake. Fubo shareholders will own the remaining 30% of the company. The deal is expected to close in 12 to 18 months.

Both Hulu+ Live TV and Fubo are streaming services that mimic the traditional cable TV bundle, offering linear TV networks. Together the streaming services have 6.2 million subscribers.

Both services will still be available separately to consumers after the deal closes. Hulu+ Live TV can be streamed through the Hulu app, as well as part of Disney’s bundle that also includes Hulu, Disney+ and ESPN+.

The deal doesn’t include the streamer Hulu, known for creating original content like “Only Murders in the Building” and “The Handmaid’s Tale,” which competes with platforms like Netflix.

“We are now stewards of an iconic brand with respect to Hulu,” said Fubo co-founder and CEO David Gandler during a Monday call with investors. He added that Hulu+ Live TV’s place embedded inside the Hulu ecosystem adds value by way of user retention.

“Having two separate platforms today, obviously, it’s not ideal,” Gandler said during the call. “We believe there are synergies on the backend…But at the moment we really want to provide consumers with choice.”

Gandler noted that while Fubo has long been focused on offering sports and news, Hulu+ Live TV is known for its entertainment offerings, too.

Fubo is expected to become immediately cash flow positive following the deal close, “instantly making Fubo the major player in the streaming space,” Gandler said on Monday’s call.

Fubo stock, which closed Friday at just $1.44 per share, surged as much as 170% in early trading Monday before paring some gains.

Notably under the deal, Fubo and Disney have settled litigation regarding Venu, the proposed sports streaming service from Disney, Fox and Warner Bros. Discovery.

Fubo had brought a lawsuit against Disney, Fox and WBD alleging the service would be anticompetitive, and last year a U.S. judge temporarily blocked the launch of Venu.

When the Disney-Fubo deal is signed, Disney, Fox and Warner Bros. Discovery will together make a $220 million cash payment to Fubo. Disney will additionally commit a $145 million term loan to Fubo in 2026. If the deal were to fall 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.

Bloomberg reported earlier on Monday a deal to merge the live TV streaming services was imminent.

Fubo had 1.6 million subscribers in North America prior to the combination with Hulu+ Live TV and competes with other similar bundle platforms like Google’s YouTube TV.

However, Fubo has long focused its bundle on providing sports and news content. It is one of the last to offer a variety of regional sports networks, the channels that host the majority of professional local teams’ games and often beckon high fees from distributors.

As a result, Fubo has dropped entertainment-focused channels from its bundles including AMC Networks’ channels, as well as Warner Bros. Discovery’s TV networks.

Fubo executives said Monday the breadth of the newly combined company will give it more leverage in carriage discussions with other networks.

As part of the merger, the companies also announced Monday that Fubo and Disney entered into a new carriage agreement which allows for Fubo to create a new sports and broadcasting service that features Disney’s networks. During the investor call, Fubo said it also reached a new agreement with Fox.

Fubo’s focus on sports was a primary driver behind its lawsuit against Disney, Warner Bros. Discovery and Fox’s joint venture sports streaming service, Venu.

Venu, which had been slated to launch in time for the beginning of the NFL season in September, was to be a complete offering of sports networks and content from the three media companies that had come together to create it. The app would have cost $42.99 a month, showcasing the high cost of sports in the TV bundle and helping to avoid any disturbance of carriage agreements.

The judge on the case noted that together Disney, Fox and WBD control about 54% of all U.S. sports media rights, and at least 60% of all nationally broadcast U.S. sports rights.

Fubo had alleged in its lawsuit that Venu was anticompetitive and would upend its business. When the U.S. judge temporarily blocked the launch of Venu in August, it was a big win for Fubo. The trio of media companies appealed the court ruling.

With the settlement, Venu can move forward with its launch, although no plans were announced on Monday.

Disney, meanwhile, has multiple irons in the fire when it comes to ESPN streaming options. In addition to its current app, ESPN+, and Venu, ESPN plans to launch a flagship direct-to-consumer streaming app later this year.

This post appeared first on NBC NEWS
You Might Also Like
  • Harris to propose federal ban on ‘corporate price-gouging’ in food and groceries
  • Business is good in ‘Vacationland.’ It would be even better with more housing.
  • Key IoT security trends for 2023
  • Home sales slipped unexpectedly in April despite big gains in supply
Share
0
FacebookTwitterPinterestWhatsapp

previous post
DP Trading Room: Does This Rally Have Legs?
next post
Vail stock struggles as strike leads to long lines at Park City Mountain

You may also like

Tariffs would be ‘catastrophic’ for sales of tequila and mezcal,...

February 13, 2025

Buy Buy Baby draws sale interest in Bed Bath &...

June 6, 2023

America’s downtown centers wither amid fading hopes for a post-pandemic...

April 2, 2023

Inflation ticks upward to 3.7% in August as the Fed’s...

September 14, 2023

Pixar is laying off 14% of its workforce as Disney...

May 22, 2024

FTC sues Amazon over ‘deceptive’ Prime sign-up and cancellation process

June 24, 2023

McDonald’s says $5 value meal sales are hot as consumers...

July 30, 2024

A California bill would let workers ignore their bosses during...

April 5, 2024

White House freeze on federal aid won’t affect student loans,...

January 29, 2025

McDonald’s is the latest company to roll back diversity goals

January 7, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Albertsons sues Kroger after judge rules...

    December 11, 2024

    How Calvin Klein and Tommy Hilfiger...

    February 6, 2025

    U.S. payrolls climbed by 209,000 in...

    July 11, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here