Disney buys embattled Fubo in dramatic turn

Field Level Media|published: Tue 7th January, 02:27 2025

Jan 22, 2022; Anaheim, California, USA; A view of the ESPN logo before UFC 270 at Honda Center. Mandatory Credit: Gary A. Vasquez-Imagn Images

Disney made shock waves in the streaming service industry on Monday, grabbing a majority stake in Fubo, a rival of ESPN's parent company.

Fubo will be joined with the Hulu + Live TV service -- which Disney also owns -- to create a new platform that will have over 6.2 million North American subscribers. Disney shareholders are set to own 70 percent of this new service, with Fubo getting the other 30 percent.

Also included in the deal is a payment of $220 million from Disney, Fox and Warner Bros. Discovery to Fubo. Those three entities are partners of Venu Sports, the sports-streaming service that Fubo sued in the summer of 2024 by claiming that it had violated U.S. antitrust law.

Venu Sports was expected to make its debut last fall, but Fubo successfully prevented that from happening.

Now the sides are working together.

"This transaction represents an incredible opportunity to build a consumer-first, live TV streaming company," Fubo co-founder and CEO David Gandler said during a call with investors on Monday. "At deal close, our company is expected to become immediately cash-flow positive, instantly making Fubo the major player in the streaming space."

Disney will also loan Fubo $145 million as part of the deal. However, Fubo won't be seeing that money until January 2026.

Once the deal closes, Hulu + Live TV and Fubo will still be offered separately.

--Field Level Media