FuboTV and Disney Announce Merger

By Bobby Samwell • Monday, January 06 10:19 • Permanent Link

Fubo TV Inc. (NYSE: FUBO) and The Walt Disney Company (NYSE: DIS) have announced a definitive agreement to combine Disney's Hulu + Live TV business with Fubo. The combined business is expected to have a total of 6.2 million North American subscribers between Fubo and Hulu + Live TV. Disney will become the majority owner of the resulting company, owning 70% of Fubo at closing.

The transaction will allow Fubo to create a new sports and broadcasting service featuring Disney’s premier sports and broadcast networks, including ABC, ESPN, and ESPN+. Fubo will continue to serve its subscribers in the Fubo app, while Hulu + Live TV will continue to be streamed in the Hulu app and offered as part of a bundle with Hulu, Disney+, and ESPN+.

In conjunction with the transaction, Disney, Fox, and Warner Bros. Discovery will make an aggregate cash payment of $220 million to Fubo. Additionally, Disney has committed to providing a $145 million term loan to Fubo in 2026 as part of the transaction.

The combined company is projected to be well-capitalized and cash-flow positive immediately after the closing of the transaction. Fubo will be governed by a board of directors with the majority appointed by Disney, as well as independent directors. Fubo’s existing management team, led by Fubo co-founder and CEO David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses.

All litigation between Fubo and Disney, as well as Fox and Warner Bros. Discovery, has been settled. As part of the transaction, Fubo will file a form 8-K regarding the transaction and conduct an investor conference call at 9:00 a.m. EST on January 6, 2025.

The transaction will be submitted to the shareholders of Fubo for their consideration and approval at a special meeting. Shareholders are urged to read the Fubo proxy statement and all other relevant documents filed with the SEC regarding the transaction carefully and in their entirety when they become available, as they contain important information about the transaction and related matters. The market has reacted to these announcements by moving the company's shares 136.3% to a price of $3.4. Check out the company's full 8-K submission here.

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