Walt Disney Co. on Wednesday said it had completed its acquisition of a majority stake in FuboTV and was quickly combining its Hulu + Live TV business with its sports business.
The union is creating the country's sixth-largest pay-TV service, with nearly 6 million domestic subscribers.
Financial terms were not disclosed.
Like competitors DirecTV, YouTube TV and Charter Spectrum, Hulu+ Live TV and Fubo distribute traditional channels, including broadcasters ABC, CBS and cable channels Fox News, Bravo and ESPN.
The combined company will be controlled by a nine-member board led by Brad Bird, former chairman of Walt Disney International. The firm will continue to offer Fubo and Hulu + Live TV as separate services accessible through their respective apps.
Disney investment plans were announced in January, after the much smaller Fubo sued Disney and two other media companies over their plans to form a streaming joint venture, Venu Sports. Fubo said the collaboration between Disney, Fox Corp. and Warner Bros. Discovery was “sports cartel“, which will destroy her business.
A the judge agreed, based on antitrust concerns, blocking the further development of Venus.
Disney's deal to acquire 70% of New York-based Fubo is completed this lawsuit.
The combined business will be led by Fubo CEO David Gandler, who co-founded the service, and Fubo's management team.
“Since Fubo was founded ten years ago, our vision has always been to create a consumer-focused streaming platform that excels in innovation and value,” Gandler said in a statement. “Together with Disney, we are creating a more flexible streaming ecosystem that gives consumers more choice while delivering profitability and sustainable growth.”
His firm will have access to a $145 million term loan that Disney has agreed to provide. Fubo's ad sales team will join Disney's sales team.
The company's shares will continue to trade publicly under the ticker symbol FUBO. Fubo's existing shareholders represent about 30% of the company. Shares rose slightly to $3.95 in mid-day trading.
