The Walt Disney Company (DIS, Finance) has agreed to combine the activities of Hulu + Live TV with FuboTV Inc. (FUBO, Finance) and acquire a 70% controlling interest in the company. With 6.2 million customers and expected annual revenue of $6 billion, the partnership will make the combined business a major participant in the online pay-TV industry, ranking second in North America.
Under the agreement, FuboTV will remain publicly traded and CEO David Gandler will lead the business going forward. Hulu + Live TV and FuboTV will remain independent options available to consumers. The partnership will also provide sports-oriented services with Disney’s flagship networks, including ABC and ESPN.
The deal resolves an ongoing legal dispute between FuboTV, Disney, Fox and Warner Bros. Discovery over the Venu Sports streaming service. Disney also committed to the new company a $145 million term loan that mathematically matures in 2026.
After this announcement, FuboTV’s stock price rose dramatically. This reflects investors’ significant confidence in the merger’s ability to increase market competitiveness and drive operational efficiency. The deal, aimed at increasing customer choice and confirming the company’s presence in the rapidly changing streaming space, will combine the qualities of both platforms.
This article first appeared on GuruFocus.
