Disney has acquired 70 percent of video service Fubo, ending a lawsuit that blocked its plan to create Venu, a sports streaming joint venture with Fox and Warner Bros. Discovery. The deal allows Fubo to merge with Disney’s Hulu + Live TV offering instead.
The move benefits Disney by offloading what analysts call “the least exciting part” of its Hulu service. Investors will be watching to see how long it takes for Disney to sell down its stake in the Fubo-Hulu + Live TV venture.
However, concerns remain about Venu’s antitrust issues. The Justice Department filed a friend-of-the-court brief in the case and can still file its own lawsuit, despite the settlement. Advocacy groups are also pushing for closer oversight of the streaming service, citing consumer harm.
Fubo’s market value is relatively low at $1.7 billion, and it faces competition from established rivals like YouTube TV, Charter, and Comcast. The company’s stock price surged 251 percent on Monday after the deal was announced, but its long-term prospects remain uncertain.
Source: https://www.nytimes.com/2025/01/07/business/dealbook/disney-fubo-hulu-streaming.html