By George Glover

Walt Disney and FuboTV shook up the streaming landscape on Monday -- and their potential merger could be a sign of what's to come for the media industry in 2025.

The two companies said they would form a new platform by combining Disney's Hulu + Live TV with sports-focused Fubo. The latter's shares spiked 250% Monday. Fubo also agreed to settle its case against Venu Sports -- a rival streaming service planned by Warner Bros. Discovery, Fox, and Disney's ESPN -- for a $220 million fee.

(Fox and News Corp, the parent company of Barron's publisher Dow Jones, share common ownership.)

There could be more deals on the horizon. Traditional players might see mergers as the only way to take on streaming giant Netflix as it bids to crack the live-TV market with its broadcasts of the NFL and WWE's Monday Night Raw .

The new company, which will retain Fubo's name and be run by its current CEO David Gandler, could be one "vessel for further consolidation of sports and linear assets, including those owned by Disney," MoffettNathanson analyst Robert Fishman said in a research note, pointing to ESPN or even Venu itself as platforms that could be folded into Fubo in the future.

"This is certainly getting far into the realm of speculation, but the deal certainly has an air of being merely step one of a larger plan," he added.

Disney fine-tuning its sports streaming strategy might not have a big impact on its shares, which were pretty much flat on Monday. But the shake-up won't stop there.

NBCUniversal parent Comcast is expected to conclude the spinoff of many of its cable TV networks -- including MSNBC, CNBC, and Golf Channel -- later this year, and other media players might see that new company as an acquisition target. In October, Barron's argued that the carve-up should boost Comcast shares, by enabling the company to focus on higher-growth divisions like its own streaming service Peacock.

Two big names coming together could also trigger a shake-up. In October, Fishman said that a marriage between Warner Bros. Discovery and Fox looks like a "natural fit." Warner Bros. would benefit from snapping up Fox's sports channels after it lost its right to air NBA games last year, and a deal would also give it control of a big four broadcast network, he added.

A successful Disney and Fubo combination could be the first episode of an M&A drama set to sweep the industry in 2025.

Write to George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

January 07, 2025 08:07 ET (13:07 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.