The firms announced on Monday that they will merge two online TV bundles, Disney sHulu+ Live TV and Fubo.
Disney will acquire a 70% ownership position in the publicly traded Fubo company, making it the majority owner of the resulting business. Both Fubo and Hulu+ Live TV are streaming services that offer linear TV networks and resemble the classic cable TV bundle.
There are 6.2 million subscribers to all of the streaming services combined.
The contract excludes Hulu, a streaming service that competes with Netflix and is well-known for producing original programs like Only Murders in the Building and The Handmaid’s Tale.
A significant aspect of the agreement is the settlement of a lawsuit between Fubo and Disney concerning Venu, the proposed sports streaming service from Disney, Fox, and Warner Bros. Discovery.
The debut of Venu was briefly stopped by a U.S. judge last year after Fubo filed a lawsuit against Disney, Fox, and WBD.
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Disney, Fox, and Warner Bros. Discovery will collectively pay Fubo $220 million in cash upon the signing of the Disney-Fubo agreement. In 2026, Disney will also give Fubo a $145 million term loan. A $130 million termination fee would be paid to Fubo if the deal fell through.
Earlier on Monday, Bloomberg reported that a deal to combine the live TV streaming services was about to happen.
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