Disney to Merge Hulu + Live TV With Fubo, Taking on YouTube TV and Ending Venu Lawsuit
The Walt Disney Co. will merge its streaming multichannel video service Hulu with Live TV with its competitor Fubo in a surprise deal that will shake up the streaming TV business, the companies said Monday.
The new company will continue to be traded publicly under the Fubo name, however Disney will control 70 percent and appoint a majority of the board. Fubo management, including co-founder and CEO David Gandler, will run the combined venture.
The deal will do a couple of big things if and when it is completed (execs say it could take 12-18 months): For starters, it will create a much bigger player in the virtual multichannel video provider (vMVPD) space, one that can more aggressively take on the market leader YouTube TV. YouTube TV said a year ago that it had 8 million subscribers, while Hulu + Live TV had 4.6 million subscribers and Fubo had 1.6 million subscribers, giving a combined offering 6.2 million subs. Related Stories Business Behind Disney's Next Big Bet: IP at Sea Business Hollywood Stocks in 2024: The Good, the Bad and the Silver Lining
On a conference call Monday morning, Gandler said that the combined venture will be “well positioned to fairly compete with our peers.”
