FuboTV Inc. (NYSE: FUBO) and The Walt Disney Company (NYSE: DIS) have announced a definitive agreement for Disney to combine its Hulu + Live TV business with Fubo, forming a combined virtual MVPD company. The transaction will see Disney owning 70% of Fubo at closing, with Fubo's existing management team, led by co-founder and CEO David Gandler, operating the newly combined Fubo and Hulu + Live TV businesses.
The combined business will operate under the Fubo publicly traded company name (NYSE: FUBO) and is expected to have a combined 6.2 million North American subscribers between Fubo and Hulu + Live TV. The new VMVPD company aims to enhance consumer choice through more flexible programming offerings.
The transaction will also see Fubo creating a new sports and broadcasting service featuring Disney’s premier sports and broadcast networks. Additionally, all litigation between Fubo and Disney has been settled, with Disney, Fox, and Warner Bros. Discovery making an aggregate cash payment of $220 million to Fubo at signing of the transaction.
The combined company is projected to be well-capitalized and cash-flow positive immediately after the closing of the transaction. Furthermore, the transaction will provide the combined company with the resources and support of Disney, and the existing Fubo management team will continue to focus on driving growth and profitability.
In conjunction with the transaction, Fubo has also settled all litigation with Disney and ESPN related to Venu Sports, a previously announced sports streaming platform. Disney has also committed to providing a $145 million term loan to Fubo in 2026 as part of the transaction.
The transaction is subject to regulatory approvals, Fubo shareholder approval, and the satisfaction of other customary closing conditions. Wells Fargo is serving as the lead financial advisor to Fubo, while Evercore is also serving as a financial advisor to Fubo. Latham & Watkins LLP is serving as the legal advisor to Fubo in connection with the transaction.
Fubo will conduct an investor conference call at 9:00 a.m. EST today, January 6, 2025, to discuss the transaction. The transaction will be submitted to the shareholders of Fubo for their consideration and approval at a special meeting, with Fubo filing a form 8-K regarding the transaction available on its investor relations website. Investors and security holders of Fubo are urged to read the Fubo proxy statement and all other relevant documents filed with the SEC in connection with the transaction as they contain important information about the transaction and related matters. As a result of these announcements, the company's shares have moved 1.0% on the market, and are now trading at a price of $112.25. Check out the company's full 8-K submission here.
