Disney (DIS) to sell its Hulu+ Live TV business to sports streamer FuboTV (FUBO) in the first Top media dealmaking tactics of 2025.
According to A Press releaseDisney will control 70% of Fubo. The sports streamer’s shareholders will own the remaining 30% of the joint venture, which will operate under the Fubo publicly traded company name.
With transactions, Fubo All lawsuits settled Disney, with Fox (FOX), and Warner Bros. Discovery (WBDAffiliated to Venu Sports, the planned sports streaming platform was announced earlier by the trio.
Shares of Fubo jumped almost 250% on the heels of the announcement on Monday. Disney stock was little changed while Fox and WBD shares were up about 1% and 3%, respectively.
The combination of the two businesses will create one of the largest digital pay-TV providers as consumers search for cable alternatives amid increased cord-cutting.
Fubo, which provides users with access to live TV channels on the Internet, has focused primarily on sports and news. Hulu + Live TV, classified as a cable replacement option — similar to YouTube TV — allows users to stream from nearly 100 live TV channels across sports, news and entertainment.
On an investor call after the announcement, Fubo said the combined company is expected to be “immediately cash flow positive” with more than 6.2 million customers in North America and more than $6 billion in revenue.
The agreement will provide Fubo with $220 million in immediate cash, plus $145 million in committed financing in January 2026 to ensure increased liquidity and continued investment.
“We are pleased with today’s results,” said David Gendler, Fubo’s co-founder and CEO, who will also run the new business. “Increased scale means we have the flexibility to pursue diverse growth strategies, both domestically and internationally, opening up many opportunities.”
Gendler added that while Fubo will continue to focus on sports and news, it will now be able to provide even more consumer options, including access to ESPN+ through revised distribution agreements with both Disney and Fox.
“Importantly, Fubo has the ability to create slim sports, news and entertainment bundles tailored to consumers’ needs,” he said, adding that Hulu + Live TV will remain an entertainment-focused cable replacement service.
Overall, Fubo’s management team said the deal will create a “very competitive and exciting environment” and that the company is now “gearing up” for its growth phase.
