Disney to Merge Hulu + Live TV with Fubo

To settle Fubo’s antitrust lawsuit over the creation of the Venu streaming service (a sports-focused joint venture by Disney, Fox, and Warner Bros. Discovery), Disney is combining its Hulu + Live TV business with Fubo.

The Big Play: Fubo argued that Venu was a monopoly in the sports world that would run it out of business. The monopoly remains, but Fubo doesn’t care anymore now that it has a lifeline… and an opportunity to make a new kind of skinny digital-cable hybrid.

Between the Games: Venu was supposed to launch last fall but was stopped by an injunction after Fubo filed its lawsuit.

Now, the whole case has been settled.

• Fubo dropped its suit after a deal was reached with Disney to merge with its Hulu + Live TV business, which will trade publicly under the FUBO ticker symbol.
• Fubo’s executive leadership will run the company, while Disney gets a 70% ownership stake, injecting $220 million in cash into the balance sheet and providing a $146 million loan next year.
• That immediately makes the business, which will have a combined 6.2 million subscribers, cash-flow positive with $6 billion in revenue.
• Fubo also gets a refreshed carriage agreement with Disney and Fox so that all of its sports channels will get offered through Fubo (which will continue to be offered as an independent platform).

The Future: Investors love this arrangement, popping Fubo’s stock by 200%. With all that money — and the new home on Hulu’s platform — Fubo said it’s ready for its “growth” stage, including an international expansion and some fresh dealmaking. For Venu, it clears the way for its big debut (as long as it jumps all the usual regulatory hurdles). We wouldn’t be surprised if it launched alongside the NBA playoffs.