In a turn of events, Disney has settled the lawsuit with sports streamer Fubo after agreeing to merge with the platform. According to Deadline, Hulu + Live TV will absorb Fubo with Disney becoming the majority owner. Fubo originally issued a lawsuit against Disney, Fox, and Warner Bros. Discovery for their planned combined platform, Venu Sports.
As a result, Deadline reports that Fubo will continue operations under its current management team and keep its name for trading purposes. Disney will spend a whopping $220 million once the deal is closed this year, with an additional loan of $145 million by 2026. Disney will own 70% of Fubo once the deal closes, with Fubo shareholders holding the remaining stock.
According to Deadline, Fubo sought to absolve the suit saying, “the Settling Parties agreed to settle all claims asserted in the Action, including … claims concerning the defendants’ bundling or tying of television channels, defendants’ use of most-favored nations clauses, and the contemplated and previously announced Venu joint venture, and to dismiss all claims in the Action with prejudice.”
“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility,” Justin Warbrooke, Disney EVP and head of Corporate Development said via Deadline. “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”
The original streaming service, Venu, was first announced last February and is still set to launch sometime this year, according to Deadline. It was set to premiere last fall, but Fubo’s injunction delayed the release. Venu’s partners’ attempts to dismiss the suit were denied. Both parties were scheduled for court in October. Priced at $42.99, the service will pull linear feeds from several sports networks providing viewers with multiple options to see live sports.
Deadline reports Fubo and Hulu + Live TV will still be offered separately, while the duo’s combined subscriber count will reach 6.2 million in North America. Fubo co-founder and CEO David Gandler assured that Fubo will remain dedicated to sports and news, while Hulu + Live TV will continue as a cable entertainment alternative service.
“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” Gandler said according to Deadline. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow. It’s a win for consumers, our shareholders, and the entire streaming industry.”
According to Deadline, Fubo is entitled to a $130 million payday if the deal fails.