Hulu + Live TV To Merge With Fubo, Ending Lawsuit Against Venu Sports Streaming Service
Disney Monday announced a new joint venture which will combine its Hulu + Live TV service with Fubo. As part of the deal, all litigation between the companies has been settled, with Fubo dropping its antitrust lawsuit against Venu, the sports-focused streaming package from Disney, Fox Corp. and Warner Bros. Discovery.
The new joint operation will be led by the existing Fubo management team, and will be governed by a board of directors with the majority appointed by Disney. Fubo co-founder and CEO David Gandler will also serve on the board. At closing, Disney will own 70% of Fubo, however, Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings.
"This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD [multichannel video programming distributor] offerings and provide consumers with even more choice and flexibility," executive vice president and head of corporate development for Disney Justin Warbrooke said in a statement. "We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value."
"We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands," Gandler said in a statement. "This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo's balance sheet and positions us for positive cash flow. It's a win for consumers, our shareholders and the entire streaming industry."
Additionally, Fubo will be allowed to create a new Sports & Broadcast service featuring Disney's sports and broadcast networks including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.
Last February, Fubo filed a federal antitrust lawsuit against Disney, Fox and Warner Bros. Discovery, alleging that the companies had engaged in a campaign to block Fubo's "sports-first" streaming business. In the summer, Fubo won a preliminary injunction to halt the launch of Venu.