Walt Disney Co. on Wednesday said it finalized its deal to acquire a majority stake in FuboTV and swiftly combined its Hulu + Live TV business with the sports-focused operation.
The union creates the nation’s sixth largest pay-TV service with nearly 6 million domestic subscribers.
Financial terms were not disclosed.
Similar to competitors DirecTV, YouTube TV and Charter Spectrum, both Hulu + Live TV and Fubo distribute traditional channels including broadcasters ABC, CBS and cable channels Fox News, Bravo and ESPN.
The combined company will be overseen by a nine-member board led by Brad Bird, former chairman of Walt Disney International. The firm will continue to offer Fubo and Hulu + Live TV as separate services available through their respective apps.
Disney’s investment plans were announced in January, after the much smaller Fubo sued Disney and two other media companies over their plans to launch a high-profile streaming joint venture, Venu Sports. Fubo argued the collaboration of Disney, Fox Corp. and Warner Bros. Discovery was “a sports cartel,” one that would crush its business.
A judge agreed based on anti-trust concerns, blocking further development of Venu.
Disney’s deal to acquire 70% of New York-based Fubo ended that litigation.
The combined business will be led by Fubo Chief Executive David Gandler, who co-founded the service, and Fubo’s management team.
“Since Fubo’s founding a decade ago, our vision has always been to build a consumer-first streaming platform defined by innovation and value,” Gandler said in a statement. “Together with Disney, we’re creating a more flexible streaming ecosystem that gives consumers greater choice, while driving profitability and sustainable growth.”
His firm will have access to a $145 million term loan that Disney agreed to provide. Fubo’s ad sales team will join Disney’s sales organization.
The company’s stock will continue to be publicly traded under the FUBO ticker. Existing Fubo shareholders represent about 30% of the company. Shares were up slightly to $3.95 in mid-day trading.
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