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Disney Announces Merger Between Hulu + Live TV and Fubo 🎥

Disney Announces Merger Between Hulu + Live TV and Fubo 🎥

Hey there! 👋
Disney's Hulu + Live TV and Fubo are joining forces in a groundbreaking merger that's set to reshape the streaming landscape. This deal will create a streaming powerhouse with over 6.2 million subscribers, challenging YouTube TV's market dominance.
Let’s dive into what happened and how law firms could be involved.
Don't have time for the full scoop? No worries, we've got you covered with a quick summary: click here
What's the deal? 🤝
The merger brings together two major streaming players:
Hulu + Live TV: Disney's live streaming service offering broad entertainment and news content
Fubo: A sports-focused streaming platform known for NFL and NBA coverage
Disney will acquire a 70% stake in Fubo, making it the majority shareholder. However, Disney’s Hulu video-on-demand service is excluded from the deal and will continue to be operated independently.
The newly formed entity doesn’t yet have a name but is expected to be finalised within the next 12–18 months. This merger will create a combined subscriber base of around 6.2 million. On the day of the announcement, Fubo’s shares skyrocketed by 200%!
Why are they merging? 🔋
The merger is set to strengthen Disney’s and Fubo’s live-streaming entertainment offerings and bolster their combined vMVPD (Virtual Multichannel Video Programming Distributor) service. To break it down, a vMVPD allows consumers to watch TV channels over the internet, often replicating the traditional cable or satellite TV experience, but delivered through streaming packages. This new partnership will allow Disney to challenge vMVPD giant YouTube TV, establishing a strong second place in the market with 6.2 million subscribers, just behind YouTube TV.
The deal also benefits Fubo by allowing it to lead carriage negotiations with other streaming services, including Disney. Carriage agreements are crucial deals between streaming platforms and content distributors. These agreements determine how content is shared with viewers, specifying rights related to advertising, pricing, and distribution.
A new carriage agreement is reportedly in the works with Disney to ensure the merged entity features Disney’s sports and broadcast networks, including ABC and ESPN.
Settling the Existing Litigation 🤝
This merger brings additional benefits by resolving Fubo’s legal action against Venue Sports, a proposed streaming joint venture that combined the forces of Disney, Fox Corporation, and Warner Bros. Discovery. Last year, Fubo filed an antitrust lawsuit and sought an injunction (a legal action to stop another party from proceeding with a specific action), arguing that the Venue Sports venture would substantially lessen competition in the sports streaming market.
As part of the settlement, Disney, Fox, and Warner Bros. Discovery have agreed to pay Fubo $220 million. Additionally, Disney will provide Fubo with a $145 million loan in 2026. The companies have also scrapped plans to launch the Venue Sports joint venture, clearing the way for this merger to proceed without further legal barriers.
How would a law firm be involved? ⚖️
Due Diligence: Given Disney’s impressive portfolio of assets and subsidiaries, including Marvel, 21st Century Fox, and Pixar, the stakes are high. Lawyers play a critical role here by conducting a detailed review of Fubo’s accounts, ongoing or potential litigation, intellectual property rights, and other assets and liabilities.
Contract Negotiation: Carriage negotiations are a key part of this merger, with lawyers (possibly M&A) drafting and finalising the agreements. These contracts will determine how the combined entity gains access to distribute content, covering terms such as the duration of agreements, advertising rights, and the sharing of revenue between content distributors.
Intellectual Property: Given the central role of content in this merger, IP lawyers must ensure that all content licenses, distribution agreements, and proprietary technology align with the terms of the deal and are free from legal conflicts that could affect the merger.
Regulatory and Compliance: Both Disney and Fubo are publicly listed companies on the New York Stock Exchange, which means they must adhere to strict regulatory requirements. Corporate lawyers will advise on compliance with securities laws, shareholder disclosures, and corporate governance.
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I hope you enjoyed this article. See you next week! 👋
Written by Chelsea Badmos