Fubo and Disney’s Hulu + Live TV service are merging to form a powerhouse in the sports streaming space, a move that will introduce a new “skinny bundle” offering centered on ESPN and other sports networks. The merger, announced Monday, will see Fubo maintaining both its brand and Hulu + Live TV while dropping its lawsuit against Disney and ESPN over competitive practices.
The new sports-focused bundle could combine national channels, regional sports networks, and digital services such as ESPN+, addressing a growing demand for customizable, affordable streaming options. Fubo CEO David Gandler highlighted the potential to create “skinnier sports news and entertainment bundles according to consumer needs” through amended distribution agreements with Disney and Fox.
As part of the merger, Disney will own approximately 70% of Fubo. The deal also resolves a heated legal battle over the Venu Sports venture, a joint initiative between Disney, Fox, and Warner Bros. Discovery. Fubo had previously criticized Venu as an effort to stifle competition in sports streaming, but Monday’s agreement clears the way for a collaborative future.
The combined company will operate under Fubo’s existing management, with Hulu + Live TV continuing to be available via the Hulu app. The merger unites Hulu’s channels, including TNT, with Fubo’s unique offerings, such as regional sports networks like NESN and FanDuel Sports Networks.
Fubo, which struggled in 2024 with a 60% stock price decline, saw its fortunes reverse with the merger news. Its stock surged 170% in pre-market trading and remained up 130% to $3.30 a share shortly after the market opened.
Justin Warbrooke, Disney’s EVP of corporate development, said the merger allows both platforms to “enhance and expand their virtual MVPD offerings” while giving consumers “more choice and flexibility.”
The deal positions the combined entity as a major player in the increasingly fragmented sports streaming landscape. With Hulu + Live TV already the second-largest virtual cable provider behind YouTube TV, the merger strengthens Fubo’s leverage in negotiations with channel providers and advertisers.
As ESPN prepares to launch its standalone direct-to-consumer product later this year, the Fubo-Disney merger underscores the shift toward customizable streaming solutions, promising greater flexibility for sports fans navigating the evolving media landscape.