Disney's Hulu Live + TV and Fubo to combine
Disney and FuboTV on Monday announced a planned merging of Hulu Live + TV and Fubo.
The two businesses will form a combined virtual multichannel video programming distributor (MVPD) company that "will operate under the Fubo publicly traded company name," the companies said.
Disney will have a 70% ownership stake in Fubo.
The combination "will facilitate an enhanced choice of programming packages and address a variety of consumer preferences at attractive price points," according to Disney and Fubo.
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It will be run by Fubo CEO David Gandler and his management team.
He described the planned merging of Fubo and Hulu Live + TV as a "win for consumers, our shareholders, and the entire streaming industry."
Disney and Fubo said the latter will set up a "new Sports & Broadcast service" that will air ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS and ESPN+ via a carriage agreement between the two.
The vMVPD company "will negotiate carriage agreements with content providers for both Hulu + Live TV and Fubo services independently from Disney," according to the companies.
When they complete the deal, consumers will still have the option to get Fubo and Hulu + Live TV as "separate offerings," they also said.
Fubo has been available since 2015.
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Meanwhile, Hulu first introduced Hulu + Live TV in 2017. Disney includes the service in bundles with Hulu, Disney+ and ESPN+.
Fubo and Hulu + Live TV boast over 6.2 million North American subscribers combined, according to Disney and Fubo.
At the same time the two companies announced the planned merging of Hulu + Live TV and Fubo, they also said a settlement had been reached for the legal action Fubo had taken last year over ESPN, Fox and Warner Bros. Discovery’s joint Venu Sports streaming platform.
The combination of Fubo and Hulu + Live TV will be "subject to regulatory approvals, Fubo shareholder approval, and the satisfaction of other customary closing conditions," Disney and Fubo said.
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The new vMVPD company is "projected to be well-capitalized and cash-flow positive immediately after the closing of the Transaction," they said.
Fubo shares surged Monday on the news.