NEW YORK & BURBANK, Calif. - In a significant move within the streaming industry, FuboTV Inc. (NYSE: NYSE:FUBO) and The Walt Disney Company (NYSE: NYSE:DIS) have reached a definitive agreement to merge Disney’s Hulu + Live TV with FuboTV. The combined entity, which will operate under the Fubo name and management, is poised to become a more formidable player in the virtual Multichannel Video Programming Distributor (vMVPD) market.
Upon completion, Disney will hold a 70% stake in Fubo. David Gandler, co-founder and CEO of Fubo, will continue to lead the company, offering consumers the existing services of both Fubo and Hulu + Live TV as separate products. The merger is expected to close subject to regulatory and Fubo shareholder approvals, along with other standard conditions. Disney, which generated $91.36 billion in revenue over the last twelve months, brings substantial financial resources to the merger.
The transaction will bring together over 6.2 million subscribers from North America, enhancing consumer choice through a more diverse selection of programming packages. Additionally, a new carriage agreement with Disney will enable Fubo to launch a Sports & Broadcast service featuring Disney’s top sports and broadcast networks.
In terms of governance, Fubo’s board will consist of a majority appointed by Disney and independent directors, with Gandler also joining the board. The merger aims to leverage synergies between the two companies, providing flexible programming options and potential sales and marketing opportunities. The combined company is projected to be well-capitalized and cash-flow positive immediately after the transaction closes.
All litigation between Fubo and Disney, as well as with other parties including ESPN, FOX, and Warner Bros. Discovery (NASDAQ:WBD), has been settled in conjunction with the merger. As part of the settlement, Disney, FOX, and Warner Bros. Discovery will collectively pay Fubo $220 million. For detailed analysis of Disney’s financial position and growth prospects, including exclusive Fair Value calculations and 8 additional ProTips, visit InvestingPro.
Disney has also committed to a $145 million term loan to Fubo in 2026, and a termination fee of $130 million is set if the merger does not proceed due to regulatory hurdles.
Wells Fargo (NYSE:WFC) and Evercore are serving as financial advisors to Fubo, with Latham & Watkins LLP and Kellogg (NYSE:K) Hansen LLP as legal advisors. Centerview Partners LLC and Cravath, Swaine & Moore LLP are advising Disney.
This merger is based on a press release statement and is currently pending approval from regulatory bodies and Fubo shareholders. The full details will be disclosed in Fubo’s forthcoming SEC filings and investor communications. Access comprehensive analysis of this merger’s implications through InvestingPro’s detailed research reports, which provide expert insights on Disney’s valuation, financial health, and growth prospects.
In other recent news, Walt Disney Co. and FuboTV Inc. are reportedly close to merging their online live TV operations, with Disney set to own 70% of the new venture. This merger, excluding Hulu’s subscription video service, would make the combined entity the second-largest digital pay-TV provider. In a separate development, Disney has announced a Bluey movie for 2027, extending its partnership with BBC Studios. The film will be streamed on Disney+ following its global theatrical release.
Disney’s growth outlook has been positively evaluated by Rosenblatt Securities, which raised the company’s stock price target while maintaining a Buy rating. This upgrade was driven by confidence in Disney’s growth potential, with the firm highlighting the company’s successful performance in various business areas. Disney has also outlined cost-cutting and revenue strategies, including price increases for its streaming services and ongoing cost reduction efforts.
Jefferies has initiated coverage on Disney stock, setting a price target of $120.00 and assigning a Hold rating. The firm’s analysis suggests strong momentum for Disney’s direct-to-consumer business and an anticipated recovery in the Parks segment’s operating income growth. These are the recent developments in Disney’s performance and future outlook.
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