Disney and FuboTV Ink Deal To Merge vMVPDs, End Litigation Over Venu Sports Launch

Disney and FuboTV Ink Deal To Merge vMVPDs, End Litigation Over Venu Sports Launch Fubo will create a Sports & Broadcasting service featuring Disneys sports, broadcast networks By Jason Dachman, Editorial Director, U.S.

Monday, January 6, 2025 - 1:15 pm

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In a stunning development in the ongoing saga of Disney, FOX, and WBD's planned Venu Sports streaming service, Disney has agreed to combine its Hulu Live TV streaming service with FuboTV to form a combined virtual MVPD company. In conjunction with the deal, Fubo has settled all litigation with Disney and ESPN related to Venu Sports - the previously announced sports-streaming platform planned by ESPN, FOX, and Warner Bros. Discovery - as well as with FOX and WBD.

Disney will own approximately 70% of Fubo, and Fubo's existing management team - led by Fubo Co-Founder/CEO David Gandler - will operate the newly combined Fubo and Hulu Live TV businesses. The combined business, which will operate under the publicly traded company name FUBO, will have a combined 6.2 million North American subscribers between the two services. The transaction is subject to regulatory approvals, Fubo shareholder approval, and satisfaction of other customary closing conditions.

Fubo and Hulu Live TV will continue to be available to consumers as separate offerings, and Fubo will create a Sports & Broadcasting service (via a new carriage agreement with Disney) featuring Disney's sports and broadcast networks - ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS - and ESPN . The combined company will negotiate carriage agreements with content providers for both Hulu Live TV and Fubo services independently from Disney.

The deal also stipulates that Disney, FOX, and Warner Bros. Discovery make an aggregate cash payment to Fubo of $220 million. In addition, Disney has committed to provide a $145 million term loan to Fubo in 2026 as part of the transaction. Additionally, a termination fee of $130 million will be payable to Fubo under certain circumstances, including if the transaction fails to close due to the failure to obtain requisite regulatory approvals on the terms and conditions set forth in the definitive agreement.

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, says Gandler. 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.

Says Justin Warbrooke, EVP/head of corporate development, Walt Disney Co. This combination will allow both Hulu Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility. 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.

Following the closing of the transaction, Fubo will be governed by a board of directors comprising a majority appointed by Disney and independent directors. Gandler will also serve on the board, continuing as Fubo CEO. The combined company will have resources and support from Disney, and the existing Fubo management team will continue to focus on driving growth and profitability. The combined company is projected to be well-capitalized and cash-flow-positive immediately after closing.

Wells Fargo is serving as lead financial advisor to Fubo, along with Evercore as financial advisor. Latham & Watkins LLP is serving as legal advisor to Fubo in connection with the transaction, and Kellogg Hansen LLP represented Fubo in its antitrust litigation. Centerview Partners LLC is serving as financial advisor and Cravath, Swaine & Moore LLP as legal advisor to Disney.

LINK:	https://www.sportsvideo.org/2025/01/06/disney-and-fubotv-ink-deal-to-m...
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