In a surprising turn of events, Fubo has reached a settlement with Disney, FOX Corp., and Warner Bros. Discovery, ending their legal dispute over the launch of the Venu Sports streaming platform. The agreement involves a $220 million settlement for Fubo, along with collaborative efforts to develop the previously stalled Venu product. This collaboration will produce the second-largest internet pay-TV company in North America, surpassing all expectations.
The combined entity will boast an impressive 6.2 million subscribers. Disney’s Hulu + Live TV will merge with Fubo, resulting in a new company where Disney holds a 70% stake, and Fubo retains 30%, remaining publicly traded. Disney will additionally provide a $145 million term loan, payable next year. Fubo CEO David Gandler will lead the new venture.
Gandler stated: “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow. It’s a win for consumers, our shareholders, and the entire streaming industry.”
As part of the agreement, Disney will enter a new carriage agreement with Fubo, facilitating the creation of a new “Sports & Broadcast” service, effectively realizing the original vision for Venu. This service will include Disney’s top sports and broadcast networks like ABC, ESPN, and ESPN+. Both Fubo and Hulu + Live TV will remain available as independent offerings post-merger.
Fubo, known for streaming over 55,000 live sporting events annually, will continue operating via its app. The new company will independently negotiate carriage agreements with content providers for both Hulu + Live TV and Fubo services. It is important to note that Fubo also owns the French pay-TV platform Molotov.