A Player Emerges: Hulu and Fubo Close Deal to Merge Live TV Streaming Operation
In a major shake-up across the streaming industry, Hulu and Fubo Close Deal to Merge Live TV Streaming Operation, instantly creating a formidable competitor in the Pay TV landscape.
The deal, which was spearheaded by The Walt Disney Company (which owns Hulu + Live TV), combines Fubo’s sports-focused service with Hulu’s deep entertainment library. The newly formed entity immediately becomes the sixth-largest Pay TV provider in the U.S., boasting nearly six million North American subscribers.
Key Details of the Mega-Merger
The completion of the transaction signifies a growing trend of consolidation among streaming platforms looking to achieve scale and profitability:
- Disney Takes Control: As part of the agreement, Disney now holds approximately a 70% equity interest in the combined company. Fubo’s existing shareholders retain the remaining 30%.
- Separate Services (For Now): Despite the merger of operations, both Fubo and Hulu + Live TV will continue to exist as separate and distinct services for consumers. Hulu + Live TV will remain accessible via the Hulu app and continue to be offered in the popular Disney bundle (Hulu, Disney+, and ESPN Unlimited).
- A Content Juggernaut: The combined service now offers a massive lineup, including over 55,000 live sporting events annually, paired with Hulu’s robust premium programming.
- Leadership and Synergies: The combined business will be managed by Fubo’s existing team, led by co-founder and CEO David Gandler. The companies anticipate significant cost and revenue synergies through flexible programming packages and optimized advertising sales.
The closure of this deal also resolves previous legal disputes between Fubo and Disney. Experts view this move as a strategic effort by Disney to strengthen its position in the competitive live TV streaming space, positioning the new venture right behind the current market leader, YouTube TV.
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