In the latest turn of events, two major video streaming companies, Disney’s Hulu and Live TV and Fubo, announced on Monday that they are set to merge, forming one of the largest pay-TV providers in the U.S. This unexpected deal is supposed to facilitate the launch of the long-delayed Venu Sports streaming service.
Under the agreement, Disney will hold a 70% stake in the merged entity, while Fubo’s existing management team will oversee operations. David Gandler, Fubo’s co-founder and CEO, will lead the combined company. The new streaming cable provider will serve 6.2 million subscribers, making it the second-largest streaming pay TV service after YouTube TV.
Fubo has agreed to drop its lawsuit against Venu Sports, a joint streaming venture by Disney, Fox Corp, and Warner Bros. Discovery as part of the merger. This legal dispute had been a significant barrier to the service’s launch. Disney, Fox, and Warner Bros. Discovery will collectively pay Fubo $220 million to resolve the issue. Additionally, Disney will extend a $145 million loan to Fubo, payable through 2026.
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This strategic merger marks a significant shift in the streaming pay-TV landscape and could reshape the industry’s competitive dynamics, particularly with the anticipated debut of Venu Sports.
