Summary by Moomoo AI
FuboTV and Disney have agreed to combine their virtual MVPD businesses, with Disney taking a 70% stake in the resulting company. The merger will unite Fubo and Hulu + Live TV under the Fubo brand, creating a combined subscriber base of 6.2 million in North America. The deal aims to enhance consumer choice through more flexible programming offerings.As part of the agreement, Fubo will create a new Sports & Broadcasting service featuring Disney's premier sports and broadcast networks. The existing Fubo management team, led by CEO David Gandler, will operate the combined business. The transaction is expected to generate synergies and position the company for immediate positive cash flow post-closing.Concurrently, Fubo has settled all litigation with Disney, ESPN, FOX, and Warner Bros. Discovery related to the Venu Sports streaming platform. The settling parties will make a $220 million aggregate cash payment to Fubo, and Disney has committed to providing a $145 million term loan to Fubo in 2026. The deal is subject to regulatory approvals and Fubo shareholder approval.
