| Key Points: – Disney to control 70% of combined streaming entity worth over $6 billion – Merger creates 6.2 million subscriber base across North America – Deal settles antitrust litigation and reshapes sports streaming landscape |
The streaming TV landscape shifted dramatically today as Disney announced plans to merge its Hulu + Live TV business with sports-focused FuboTV, creating a powerhouse that will reshape how millions of Americans consume live content. The deal, which gives Disney a 70% controlling stake in the combined entity, marks 2025’s first major media consolidation.
The merger creates one of the largest digital pay-TV providers in North America, with over 6.2 million subscribers and projected revenue exceeding $6 billion. Under the agreement, the combined business will operate under the Fubo publicly traded company name, with current Fubo shareholders retaining 30% ownership.
David Gandler, Fubo’s co-founder and CEO, who will lead the new entity, emphasized the strategic benefits of increased scale. The merger provides Fubo with immediate access to $220 million in cash, plus an additional $145 million in committed financing available in January 2026, strengthening its position for future growth and investment.
The deal notably resolves Fubo’s ongoing antitrust litigation with Disney, Fox, and Warner Bros. Discovery regarding the Venu Sports platform. This settlement removes a significant obstacle to the planned sports streaming service and positions the combined company to offer more flexible content packages to consumers.
The merger addresses several key challenges in the streaming landscape. For Fubo, which has struggled with high content costs and subscriber churn, the partnership provides crucial financial stability and enhanced content access, including ESPN+ through new distribution agreements. For Disney, the deal strengthens its position in the increasingly competitive streaming market while expanding its reach in sports content delivery.
Looking ahead, the combined company plans to maintain distinct service offerings. Hulu + Live TV will continue its focus on entertainment-based cable replacement, while Fubo will expand its sports and news offerings. Gandler highlighted the potential for creating “skinnier” bundles tailored to specific consumer preferences, addressing a long-standing market demand for more flexible viewing options.
The market has responded positively to the announcement, with Fubo’s shares surging nearly 250% following the news. The combination is expected to achieve immediate positive cash flow, addressing previous profitability concerns in the streaming sector.
This strategic merger represents a significant evolution in the streaming industry’s maturation, potentially setting the stage for further consolidation as providers seek scale and profitability in an increasingly competitive market. The deal’s success could provide a blueprint for future media partnerships aimed at balancing content costs, subscriber growth, and sustainable business models.