Disney and Fubo have officially completed a new deal that combines Fubo and Hulu + Live TV into one powerhouse. This should help the company better compete with YouTube TV and other rivals.
At the beginning of the year, Disney confirmed it was trying to merge with Fubo TV, and we haven't heard much since—well, except that Disney still plans to blend Hulu's offering into the Disney+ app. That aside, the company is still busy bolstering its live TV options, and with the acquisition and majority stake in Fubo TV, it did exactly that.
According to the press release , the deal is complete. Hulu and Fubo will continue to be available as independent services, at least initially, but they have now combined to deliver 6 million subscribers for Disney, making it the 6th largest pay TV company. Both services give customers plenty of choice, from skinny affordable bundles to robust streaming options with endless channels and content.
For those curious, this new deal emerged after Disney, Warner, and FOX tried to work out an all-new streaming service called Venu Sports as a team. Eventually, it faced legal disputes and regulatory hurdles and was canceled . After that, Disney moved to acquire Fubo, which it now has.
With Hulu + Live TV and Fubo combined, consumers now have fewer choices, even if the two remain separate. That's because eventually prices will likely increase, and we all know Disney still plans to shutter Hulu and combine it with Disney+. That said, this partnership delivers subscribers all sorts of live TV, original programming, and more than 55,000 live sporting events. It's a pretty feature and content-complete package.
Fubo CEO David Gandler said, "Since Fubo's founding a decade ago, our vision has always been to build a consumer-first streaming platform defined by innovation and value. Together with Disney, we're creating a more flexible streaming ecosystem that gives consumers greater choice, while driving profitability and sustainable growth."
Disney holds around 70% interest in the newly combined company with existing Fubo shareholders holding an approximately 30% interest. Disney has also agreed to give the newly formed combined company a $145 million loan to help deliver more content to subscribers.
As we said above, Hulu and Fubo will continue operating as independent platforms. While we wait to see how things shake out, here's everything streaming on Disney+ and Hulu in November .
Source: BusinessWire
