Walt Disney Co (NYSE: DIS) and FuboTV Inc (NYSE: FUBO) announced plans to combine their online live TV operations on Monday, forming North America’s second-largest digital pay-TV provider with 6.2 million subscribers.
Disney will maintain 70% ownership of the new venture, which will continue to operate under both the Fubo and Hulu + Live TV brands, the companies said. The deal excludes Hulu’s on-demand streaming service.
Fubo shares nearly tripled to $3.99 at the New York open, marking their biggest jump since January 2018, while Disney shares rose 0.7%.
Fubo co-founder David Gandler will lead the combined operation, which trails only YouTube TV in the digital pay-TV market. The merger aims to strengthen Fubo’s market position, as the company faced challenges with programming costs and subscriber retention.
The agreement includes a settlement of Fubo’s litigation against Venu Sports, the planned streaming platform from Disney, Fox Corp and Warner Bros. Discovery Inc. The Venu partners will pay Fubo $220 million, with Disney providing an additional $145 million term loan in 2026.
Under the deal, Disney will establish a new carriage agreement allowing Fubo to create a sports and broadcast service featuring Disney networks, including ABC and ESPN. Fubo, which currently streams over 55,000 live sporting events annually, will maintain its separate app while Hulu + Live TV remains part of Disney’s broader streaming bundle.
“This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility,” Gandler said in a statement. “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.”
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