Fubo and Disney Merge to Create New Streaming Powerhouse, Strengthening SEO Strategy for Sports and Live TV Content

Fubo and Disney Merge to Create New Streaming Powerhouse

Fubo has reached a groundbreaking agreement with Disney to merge Hulu + Live TV with its platform, forming a new, combined entity in the multichannel video distribution space. This deal follows a legal clash between Fubo and Disney, as well as other media giants, Fox and Warner Bros. Discovery, over the launch of a new sports streaming service called Venu. Fubo had previously filed a lawsuit alleging that Venu Sports’ planned release would be anti-competitive. However, with this new deal in place, Fubo has dropped the lawsuit and put aside the conflict.

Under the terms of the agreement, Disney will hold a dominant 70% stake in the merged company, with Fubo's co-founder and CEO, David Gandler, remaining at the helm. The deal also ensures that Hulu’s primary video subscription service will continue to run independently. In his statement, Gandler emphasized that the merger would allow Fubo to offer consumers more options and flexibility, while also strengthening the company’s financial position.

In addition to the merger, Fubo is set to receive a significant $220 million payout from Disney, Fox, and Warner Bros. Discovery, as part of the agreement. Disney will also inject an additional $145 million into Fubo this year. If the deal falls through, Fubo will be entitled to a $130 million termination fee.

This collaborative approach signals a major shift, especially after a federal court ruling last summer that blocked the launch of Venu Sports in 2024. Now, with the lawsuit behind them, the companies seem ready to move forward together, rather than in competition.