FuboTV’s merger with Disney’s Hulu + Live TV gets officially approved
In a letter to shareholders back in March FuboTV (FUBO) CEO David Gandler called a proposed merger with Disney’s (DIS) Hulu + Live TV “a game-changing opportunity” for the sports-focused streamer.
The deal, which was announced in January and was awaiting regulatory approval, has now officially been closed, the company said on Wednesday. Fubo’s shareholders had previously approved the deal last month.
The merger creates the sixth largest pay TV company in the US with nearly 6 million subscribers in North America. The platform will offer more than 55,000 live sporting events, as well as entertainment-focused programming offerings from Fubo and Hulu + Live TV.
Fubo and Hulu + Live TV will continue to be available to consumers as separate services.This means Hulu + Live TV will continue to be streamed in the Hulu app, while Fubo will serve viewers in the Fubo app.
Disney will own about 70% of the new entity, with Fubo shareholders owning the other 30%. Gandler will remain at the helm of Fubo.
The combined company will have access to a $145 million term loan that Disney has committed to provide to Fubo in 2026.
The Fubo advertising sales group will transition to Disney’s advertising team to deliver data-driven campaigns, while Fubo’s existing management team will continue to operate both businesses.
“Since Fubo’s founding a decade ago, our vision has always been to build a consumer-first streaming platform defined by innovation and value,” Gandler said in a statement.
“Together with Disney, we’re creating a more flexible streaming ecosystem that gives consumers greater choice, while driving profitability and sustainable growth.”
He added that the merger with Disney “delivers the scale, stability and strategic clarity to create lasting value for consumers and shareholders, and indelibly impact the future of live streaming.”
A new board of directors was also announced, which will include Gandler. Andy Bird, a veteran British media executive and former chairman of Walt Disney International, will serve as independent chairman.
A month after the merger was announced, US Senator Elizabeth Warren objected to the deal in a letter to the Department of Justice, warning that it could reduce competition in the sports streaming market and harm consumers.
“This proposed acquisition raises significant concerns under antitrust law, would give Disney increased market power and incentives to increase costs for viewers,” Warren wrote in a February letter to the DOJ.
“[The deal] should be regarded as another data point in Disney’s history of anticompetitive behavior,” she added.
The DOJ launched an investigation into the proposed merger in April, a couple of months after Warren sent her letter. However, the agency reportedly concluded its probe last week.
Fubo’s stock rose as much as 8% on news of the deal, before closing up 1.4% on Wednesday. It has surged 192.9% for the year.
The company is scheduled to report its Q3 earnings next week. Meanwhile, Disney’s stock fell 1.3% on Wednesday.