The Walt Disney Company announced in a press release on Monday that it reached a definitive agreement with FuboTV Inc. to merge its Hulu + Live TV with Fubo and form "a combined virtual MVPD company."
According to the press release, Disney will become a majority owner of Fubo, controlling 70% of its shares. Fubo's current management team, led by Fubo CEO David Gandler, will run the newly formed company. After signing the deal, Disney, FOX and Warner Bros. Discovery will make a $220 million cash payment to Fubo, and Disney will grant Fubo a $145 million term loan in 2026. If the deal fails, Fubo will get a $130 million termination fee, Disney explained.
"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," Gandler commented.
