Disney has announced a merger between its Hulu+ Live TV service and Fubo, a prominent internet TV bundle, resulting in a new entity where Disney will hold a 70% majority stake in publicly traded Fubo. The combined services will cater to a substantial audience, with a total of 6.2 million subscribers, mimicking traditional cable TV offerings through live linear networks. This merger also resolves ongoing litigation concerning Venu, a proposed sports streaming service involving Disney, Fox, and Warner Bros. Discovery, which had previously faced legal challenges from Fubo. The merger agreement stipulates that Disney, Fox, and Warner Bros. Discovery will pay Fubo $220 million in cash, alongside a commitment from Disney for a $145 million term loan due in 2026. Should the merger not proceed, Fubo is entitled to a $130 million termination fee. This strategic collaboration is expected to reshape the live TV streaming landscape and enhance competitive positioning for the merged entity. The news comes as market speculation regarding the merger intensified, highlighting the evolving dynamics of the streaming industry. Further updates on this developing story are anticipated.
