Disney will combine its Hulu + live television service with FuboMenting two television packages on the Internet, companies announced on Monday.
Disney will become the majority owner of the resulting company – the company Fubo listed on the stock market – with a participation of 70%. Fubo shareholders will hold the remaining 30% of the company. The agreement should be concluded in 12 to 18 months.
Hulu + Live TV and Fubo are streaming services that imitate the traditional cable television bundle, offering linear television networks. Together, streaming services have 6.2 million subscribers.
The two services will always be available separately for consumers after the end of the agreement. Hulu + Live TV can be broadcast via the Hulu application, as well as in the Disney Bundle which also includes Hulu, Disney + and ESPN +.
The agreement does not include the Streamer Hulu, known for creating original content as “only murders in the building” and “The Handmaid's Tale”, which competes with platforms like Netflix.
“We are now the guards of an emblematic brand with regard to Hulu,” said Fubo co-founder and CEO David Gandler during a Monday call with investors. He added that the place of Hulu + Live TV integrated inside the Hulu ecosystem adds value through user retention.
“Having two separate platforms today, of course, is not ideal,” said Gandler during the call. “We believe that there are synergies on the backend. … But for the moment, we really want to give consumers a choice.”
Gandler noted that although Fubo has been focusing for a long time on the supply of sports and news, Hulu + Live TV is also known for its entertainment offers.
FUBO is expected to become immediately positive on cash flow after the agreement is concluded, “FUBO instantly doing the main actor in the streaming space,” Gandler said on Monday call.
FUBO STOCK, which closed on Friday at only $ 1.44 per share, jumped 250% on Monday.
Fubo Stock increases after Disney Deal.
In particular under the agreement, Fubo and Disney have set disputes concerning Venu, the Sports Sports Service offered from Disney, Fox and Discovery Warner Bros..
Fubo had brought legal action against Disney, Fox and WBD alleging that the service would be anti -competitive, and last year an American judge temporarily blocked Venu launch.
When the Disney-Fubo agreement is signed, Disney, Fox and Warner Bros. Discovery will make cash payment of $ 220 million in Fubo together. Disney will also initiate a long -term loan of $ 145 million in Fubo in 2026. If the agreement was to go, Fubo would receive termination fees of $ 130 million.
The combined company will be managed by the Fubo management team, including Gandler, while its new board of directors will be mainly appointed by Disney.
Bloomberg reported Earlier Monday, an agreement to merge live television streaming services was imminent.
Sports concentration
Fubo had 1.6 million subscribers in North America before the combination with Hulu + Live TV and competes with other platforms of similar packets such as Google YouTube TV.
However, Fubo has long concentrated his package on the supply of sporting content and news. This is one of the last to offer a variety of regional sports networks, the channels that welcome most of the games of local professional teams and often becon High fees of distributors.
Consequently, Fubo has abandoned Channels focused on the entertainment of his packages, including AMC Networks channels, as well as Warner Bros Discovery television networks.
FUBO leaders said on Monday that the extent of the newly combined company will give it more leverage in transport discussions with other networks.
As part of the merger, companies also announced on Monday that Fubo and Disney had concluded a new transport agreement that allows Fubo to create a new sports and radio service that includes Disney networks. During the call for investors, Fubo said that he had also entered into a new agreement with Fox.
The accent put by FUBO on sports was a main engine behind his trial against Disney, Warner Bros. Discovery and the Coentreprise Sports Service of Fox, who came.
Coming, which was to be launched in time for the start of the NFL season in September, was to be a complete offer of sports networks and content of the three media companies that had gathered to create it. The application would have cost $ 42.99 per month, presenting the high sports cost in the TV pack and helping to avoid any disruption of the transport agreements.
The judge of the case noted that together Disney, Fox and WBD control around 54% of all rights of American sports media, and at least 60% of all American sports rights.
Fubo had allegedly allegedly allegedly anti -competitive and would upset his activities. When the judge temporarily blocked the launch of the Venu in August, it was a great victory for Fubo. The trio of media companies appealed the decision of the court.
With the regulations, who came can move forward with its launch, although no plan was announced on Monday.
Disney, meanwhile, has several irons in fire regarding ESPN streaming options. In addition to its current application, ESPN + and Venu, ESPN provides for launch A flagship streaming application directly to the consumer later this year.
– Alex Sherman of CNBC contributed to this article.
Disclosure: Comcast, which has NBCUNIVERIVERSAL CNBC, is a co -owner of Hulu.
