Fubo combines with Disney’s Hulu + Live TV; Lawsuit against Venu Sports resolved

Disney’s Hulu + Live TV and sports streaming service Fubo are combining in a deal that will also see the resolution of a lawsuit against the creation of Venu Sports.

Fubo and Hulu + Live TV allow customers to stream live streams and cable networks on their TVs, mobile phones, tablets, and other internet-connected devices.

The combined company, in which Disney will hold a 70% stake, will operate under the publicly traded company name of Fubo and will be led by Fubo’s existing management team. Fubo and Hulu + Live TV together have 6.2 million subscribers in North America.

Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings once the transaction closes.

“This combination allows us to deliver on our promise to provide consumers with greater choice and flexibility,” Fubo CEO David Gandler said in a statement. “In addition, this deal allows us to scale effectively, strengthens Fubo’s balance sheet, and positions us for positive cash flow.”

Disney has committed to providing a $145 million term loan to Fubo in 2026. There is also a $130 million termination fee payable to Fubo under certain circumstances.

Disney said it will also enter into a new agreement with Fubo that will allow Fubo to create a new sports and streaming service featuring Disney’s sports and streaming networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS and ESPN+ .

The companies said Fubo resolved all litigation with Disney and ESPN related to Venu Sports, the planned sports streaming platform from ESPN, Fox and Warner Bros. Discovery. Fubo also resolved all litigation with Fox and Warner Bros. Discovery.

In August, a federal judge granted Fubo’s motion for a preliminary injunction against Venu Sports. Last month, the same judge denied Venu’s motion to dismiss the lawsuit.

Disney, Fox and Warner Bros. Discovery will make a payment of $220 million to Fubo.

Shares of Fubotv Inc. more than tripled in afternoon trading Monday, while Disney shares rose slightly.

Disney is the parent company of this ABC station.