Disney’s Hulu + Live TV and sports streaming service Fubo are teaming up in a deal that will also see the settlement of a lawsuit against the creation of Venu Sports.
Both Fubo and Hulu + Live TV allow customers to stream live streams and cable networks to their TVs, mobile phones, tablets and other internet-connected devices.
The combined company, in which Disney will have a 70% stake, will operate under the publicly traded company name of Fubo and will be led by Fubo’s existing management team. Fubo and Hulu + Live TV have a total of 6.2 million North American subscribers.
The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange on August 8, 2017.
AP Photo/Richard Drew, file
Fubo and Hulu + Live TV will still be available to consumers as separate offerings once the deal closes.
“This combination allows us to deliver on our promise to offer consumers more choice and flexibility,” David Gandler, CEO of Fubo, said in a statement. “Additionally, this agreement allows us to scale efficiently, strengthens Fubo’s balance sheet and positions us for positive cash flow.”
Disney has agreed to provide a $145 million term loan to Fubo in 2026. A termination fee of $130 million will also be payable to Fubo in certain circumstances.
Disney announced that it will also enter into a new deal with Fubo that will allow Fubo to create a new sports and streaming service featuring Disney’s sports and broadcast networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN , ESPNEWS and ESPN+.
The companies said Fubo has settled all disputes with Disney and ESPN related to Venu Sports, the planned sports streaming platform from ESPN, Fox and Warner Bros. Discovery. Fubo also settled all disputes with Fox and Warner Bros. Discovery.
In August, a federal judge granted Fubo’s motion for a preliminary injunction against Venu Sports. Last month, the same judge denied Venu’s motion to dismiss the lawsuit.
Disney, Fox and Warner Bros. Discovery will pay Fubo $220 million.
Shares of Fubotv Inc. more than tripled Monday afternoon, while shares of Disney rose slightly.
Disney is the parent company of this ABC station.
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