Walt Disney (DIS) Enters Agreement with FuboTV Inc. to Combine Hulu + Live TV Business, Settles Litigation

On January 6, 2025, The Walt Disney Company filed a Form 8-K with the Securities and Exchange Commission, announcing the signing of a definitive agreement with FuboTV Inc. The deal entails the combination of Disney’s Hulu + Live TV business with Fubo, forming a joint venture to enhance consumer choice in the virtual MVPD domain. Alongside this agreement, Fubo settled all litigation with Disney and ESPN concerning Venu Sports, a sports streaming platform planned by ESPN, FOX, and Warner Bros. Discovery.

Under the terms of the agreement, Disney will emerge as the majority owner of the resulting company, with Fubo’s existing management team, led by CEO David Gandler, continuing to oversee operations. The combined entity is expected to cater to a combined total of 6.2 million North American subscribers from both Fubo and Hulu + Live TV, offering enhanced programming choices.

In connection with the transaction, Disney, FOX, and Warner Bros. Discovery will provide Fubo with a $220 million cash settlement at the transaction’s signing. Additionally, Disney has committed to extending a $145 million term loan to Fubo in 2026, further solidifying the partnership. However, it is noted that any legal hindrances or regulatory actions may impede the transaction, potentially necessitating the payment of a termination fee outlined in the press release.

The collaboration aims to bolster offerings, enriching the virtual MVPD landscape, and providing subscribers with an array of diverse programming. Following the completion of this transaction, Fubo will operate under a board of directors with a majority appointed by Disney, as well as independent directors.

Looking ahead, the combined company is projected to realize synergies through innovative programming packages, improved sales and marketing strategies, and greater flexibility in catering to diverse audience preferences. The joint venture anticipates being well-capitalized and cash-flow positive shortly after the transaction closes.

To better facilitate the transaction’s completion, Fubo has enlisted Wells Fargo and Evercore as financial advisors, while Latham & Watkins LLP serves as legal advisor. On the other side, Centerview Partners LLC and Cravath, Swaine & Moore LLP are providing financial and legal guidance, respectively, to The Walt Disney Company.

Both Fubo and Disney are moving forward with the expectation of closing this significant agreement subject to regulatory approvals and customary closing conditions, as articulated in the SEC filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Walt Disney’s 8K filing here.

About Walt Disney

The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners.