Disney Reshapes Sports Streaming with Fubo Merger
Deal News | Jan 17, 2025 | EIN
In a significant shift in the sports streaming landscape, Disney has announced a merger of its Hulu With Live TV service with the live-sports streaming platform FuboTV. This merger includes Disney acquiring a 70% stake in FuboTV, dissolving the proposed Venu Sports megaproject, and halting ongoing litigation between Fubo and Disney. The deal gives Disney control over board appointments at Fubo while allowing Fubo operational autonomy. Disney plans to introduce a new ESPN-Fubo-ABC-ESPN+ bundle and phase out ESPN+ in favour of a standalone ESPN streaming service. The merger has prompted legal challenges from competitors, notably DirecTV, which argues that Disney's expanded influence will drive consumer costs upward. Despite the legal tumult, the collaboration marks a strategic repositioning for both entities, especially for Disney, aiming to bolster its streaming portfolio.
Sectors
- Media & Entertainment
- Sports Broadcasting
Geography
- United States – The headquarters and primary operations for Disney, FuboTV, and the legal proceedings are within the United States, making it the central geography for this news.
Industry
- Media & Entertainment – The merger between Disney and FuboTV reflects significant movements within the Media & Entertainment sector, particularly regarding how content is delivered through streaming platforms.
- Sports Broadcasting – This industry is relevant as the merger impacts the broadcasting and streaming of sports content, affecting how rights are sold and consumed.
Financials
- 70% – The stake acquired by Disney in FuboTV as part of the merger.
- 42.99 – Price in USD of the forthcoming ESPN standalone streaming service planned by Disney.
- 32.99 – The current monthly cost in USD for FuboTV's cheapest streaming plan.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Disney | Acquirer | Company | A major media and entertainment conglomerate that acquired a 70% stake in FuboTV as part of a new strategic alliance. |
| FuboTV | Target | Company | A live-sports streaming platform that has merged with Hulu With Live TV, forming a new entity controlled by Disney. |
| FuboTV Subscriber | Plaintiff | People | A FuboTV subscriber who filed a federal lawsuit against Disney's strategic maneuvers impacting service pricing. |
| DirecTV | Competitor | Company | A satellite TV service provider challenging the legality of the Disney and Fubo merger on antitrust grounds. |
| EchoStar | Competitor | Company | Satellite service provider rivalling DirecTV, involved indirectly in legal and competitive challenges. |
| Fox | Former Partner | Company | Former Venu Sports project partner that holds agreements with entities involved in the merger. |
| Warner Bros. Discovery | Former Partner | Company | Another former partner in the Venu project, similarly positioned to license sports content post-merger. |