The FuboTV app on a television arranged in New York, US, on Wednesday, Feb. 21, 2024.
Gabby Jones | Bloomberg | Getty Images
Disney’s Hulu+ Live TV will be combined 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. 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.
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.
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, 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.
Bloomberg reported earlier on Monday a deal to merge the live TV streaming services was imminent.
This is breaking news. Please check back for updates.
cnbc