Disney has announced a joint venture deal with pay-TV streaming provider Fubo to combine its Hulu + Live TV service with Fubo’s operations. Under the agreement, Fubo will drop its antitrust lawsuit seeking to block Venu Sports, a sports-focused streaming package from Disney, Fox Corp., and Warner Bros. Discovery.
The combined business will operate under Fubo’s publicly traded company name and own 70% of the joint venture, with Fubo holding the remaining 30%. The Hulu + Live TV and Fubo brands will remain separately sold and marketed, but they will share a new “sports and broadcasting service” featuring Disney’s sports and broadcast networks.
Disney will also make a cash payment of $220 million to Fubo as part of the deal. Additionally, Disney has committed to provide a $145 million term loan to Fubo in 2026. A deal-breakup fee of $130 million will be payable to Fubo if the transaction fails to close due to regulatory issues.
The joint venture aims to enhance and expand Hulu + Live TV and Fubo’s virtual MVPD offerings, providing consumers with more choice and flexibility. Disney CEO Justin Warbrooke expressed confidence in Fubo’s management team and their ability to grow the business. The combined company will benefit from “the resources and support of Disney,” according to the companies’ joint announcement.
The deal is expected to close within 12-18 months, and it marks a significant move by Disney into the streaming market. With this partnership, Fubo hopes to scale effectively, strengthen its balance sheet, and achieve positive cash flow.
Source: https://variety.com/2025/tv/news/disney-hulu-live-tv-fubo-merger-ending-venu-lawsuit-1236266843