Disney's Live TV Deal

Disney has agreed to combine its Hulu+ Live TV service with FuboTV, forming North America's second-largest live TV streamer. The combined business will boast more than 6 million subscribers, behind YouTube TV's roughly 8 million subscribers. 

The deal resolves litigation over the formation of Venu Sports—a joint venture from Disney's ESPN, Fox, and Warner Bros.—which a judge blocked last year after FuboTV sued on antitrust grounds. As part of the legal settlement, Disney, Fox, and Warner Bros. will pay Fubo $220M in cash; Disney will additionally provide a $145M term loan to Fubo in 2026. If the Fubo-Disney deal fails to close or gain regulatory approval, Disney will owe Fubo a $130M termination fee. Fubo shares soared more than 250% on yesterday's news. 

Disney will own 70% of the combined business, which will operate under the publicly traded Fubo name. Fubo and Hulu+ Live TV will be available to subscribers separately; the deal excludes Hulu's original content streaming platform.