Deal Overview - The Walt Disney Company intends to become a 70% owner of FuboTV, integrating its Hulu+Live service into FuboTV while maintaining separate branding [2] - FuboTV will remain a publicly traded company, with Disney as its largest shareholder, acquiring newly issued stock within the next 18 months [3] - The deal allows Disney to proceed with its sports-focused Venu platform and provides FuboTV with much-needed funding, leading to a 250% stock surge post-announcement [4] Strategic Implications for Disney - Disney is not outright acquiring FuboTV but positioning itself for a future sale, avoiding a full acquisition despite having $6 billion in liquidity [6] - The deal aligns with Disney's potential shift away from the cable television business, focusing instead on content creation and direct-to-consumer sales [8] - Disney retains flexibility to sell its 70% stake in FuboTV at a loss in the future, as FuboTV's market cap remains under $2 billion despite recent gains [11] Industry Dynamics - The cable television industry faces challenges, including rising carriage fees and increased competition from live-streaming alternatives [10] - Live sports remain a key driver for cable subscriptions, but platforms like Amazon Prime and Netflix are encroaching on this space [13] - Disney's Venu platform, set to launch with sports content from Warner, Fox, and ESPN, could accelerate cord-cutting trends [14][15] Financial and Operational Impact - Hulu+Live is EBITDA-profitable, and its integration with FuboTV is expected to enhance profitability under a unified structure [9] - Disney's agreement with FuboTV resolves near-term challenges and provides cost-effective exit options from the streaming-cable business [18] - The final purchase price for Disney's 70% stake in FuboTV remains unspecified, with potential for FuboTV's stock to decline from its current elevated levels [19] Long-Term Outlook - Disney's ability to monetize content outside the cable industry strengthens its position, reducing reliance on the declining cable television sector [16] - The deal reinforces Disney's bullish outlook, offering strategic flexibility and growth opportunities in the evolving media landscape [17]

File: Guests eat at Great Maple Restaurant at the Pixar Place Hotel at the Disneyland Resort in Anaheim, CA.A former Disney employee agreed to plead guilty in a federal criminal case where he is accused of hacking into menu-creation software for the company's restaurants, to falsely indicate that certain food items did not contain potentially deadly allergens such as peanuts, a court filing Friday shows.Michael Scheuer is also accused of making other changes to Disney restaurant menus, including altering fo ...

Disney said its three streaming platforms have attracted roughly 157 million monthly active users worldwide.The entertainment giant announced those figures for Disney+, Hulu and ESPN+ Wednesday (Jan. 8) as part of its presentation at the CES showcase in Las Vegas. The company said that figure includes 112 million domestic users, and is an average per month for the last six months.“Disney sits at the intersection of world class sports and entertainment content, with the most high-value audiences in ad-suppor ...

Walt Disney Co (DIS -1.46%) and FuboTV (FUBO -2.02%) just shook up the streaming sector.The two companies surprised investors by announcing the combination of Fubo and Hulu + Live TV into a company that will be known as Fubo, though both services will continue to exist as separate branded entities. Fubo shares skyrocketed on the news, more than tripling on Monday, while Disney initially posted modest gains but closed down 0.1%.Disney will own a 70% stake in the resulting company, and Fubo will retain a 30% ...

The atmosphere at the Disney Bundle Celebrating National Streaming Day at The Row in Los Angeles on May 19, 2022.Disney said Wednesday it has an estimated 157 million global monthly active users watching ad-supported content across its streaming platforms — Disney+, Hulu and ESPN+.That number includes 112 million users domestically and is an average per month over the last six months.While traditional TV outlets have a standard way of measuring ratings and viewership, there is still no industry standard met ...

Disney and pay-TV provider Fubo just reached a deal that will shake up sports TV.There will be new ways to watch sports in 2025, including new services from ESPN.Media analysts shared what the new deal means for sports fans, including cord-cutters.Disney's fear of not getting sports streaming right is making the whole marketplace confusing for viewers. AD A newly announced deal between Disney and Fubo will give sports fans more streaming choices in 2025.The Mouse House is combining its Hulu + Live TV servi ...

Merger and Settlement Details - Disney and FuboTV announced a merger of their virtual MVPD services, Hulu + Live TV and Fubo, marking the start of 2025 media and entertainment M&A activity [1] - The deal resolves Fubo's lawsuit against Venu, a sports streaming venture by Disney, Warner Bros Discovery, and Fox [1] - Fubo will receive $220 million in cash from Disney, Fox, and Warner Bros Discovery, along with a $145 million loan from Disney [3] - Disney will own 70% of the combined entity, with Fubo's management team running operations and Disney controlling the majority of board seats [4] - If the deal collapses, Fubo will still receive a $130 million consolation prize [4] Fubo's Financial and Market Impact - Fubo's market cap nearly quadrupled in the 24 hours following the settlement announcement [3] - Prior to the settlement, Fubo's total balance sheet showed $223 million in cash, and its stock price had been stagnant for years [3] - The settlement and merger provide Fubo with a new distribution deal for Disney's networks and the ability to offer tailored content bundles [4] Venu's Future and Industry Implications - Venu's future remains uncertain, as the sports streaming market has evolved significantly since its announcement [5] - The NBA's move from WBD to NBCUniversal reduces WBD's contributions to Venu and strengthens Peacock as a competitor [5] - Netflix has emerged as a strong player in live sports streaming, further complicating Venu's prospects [5] - The settlement avoids a potentially damaging court decision that could have impacted the broader practice of bundling programming by content owners [6] Streaming Industry Complexity - The merger of Fubo and Hulu + Live TV will not simplify the streaming landscape for consumers, as separate offerings under both brands will continue [8] - Legacy Hulu, with its on-demand content library, will remain independently operated by Disney [8] - The industry is likely to see more M&A activity, further shifting the competitive landscape [9] - The new Fubo entity could be a candidate for future acquisitions or be acquired by others [9]

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Core Insights - The merger between Fubo and Hulu+Live TV marks a significant consolidation in the streaming industry, emphasizing the growing importance of sports programming as a valuable content category [1][2][4] - Disney will control 70% of the merged entity, enhancing its advertising inventory and distribution capabilities [3][4] - The combined subscriber base of the new entity, referred to as "Hubo," will reach 6.2 million, intensifying competition against YouTube TV's 8 million subscribers [5] Company Developments - Fubo's stock price surged over 260% following the merger announcement, indicating strong market confidence in the deal [3] - The merger is expected to create cost-saving opportunities and improve negotiation leverage with networks and advertisers [6][7] - The deal includes $220 million in capital and a $140 million term loan to strengthen the financial position of the combined company [7] Industry Trends - The consolidation reflects a broader trend in the industry where major players like Amazon, Apple, and Netflix are investing heavily in sports content to attract viewers [2][8] - Disney's strategy includes expanding its sports programming across various platforms, including the upcoming launch of a full online app version of ESPN [8][10] - The merger also facilitates the launch of Venu, a sports-focused "skinny bundle," which had been delayed due to legal issues [9][10]

Disney is boosting its advertising capabilities for live events, with third-party partnerships, a new certification program for live sports and entertainment as well as biddable deals for live sports. Google’s Display & Video 360, The Trade Desk, and Yahoo DSP are the first demand-side platforms to be certified by Disney. Magnite is the only third-party supply-side partner at launch.  Disney made the announcement at CES in Las Vegas, where is getting set for its annual Tech + Data Showcase on Wednesday. Th ...