The Walt Disney Company (DIS, Financials) has agreed to combine FuboTV Inc. (FUBO, Financials) with Hulu + Live TV activities, therefore obtaining a 70% controlling share in the company. With 6.2 million customers and expected annual income of $6 billion, the cooperation places the merged business as a major participant in the online pay-TV industry, ranking second in North America.
Under the agreement, FuboTV will remain publicly listed and David Gandler, its CEO, will be leading the business going forward. Hulu + Live TV and FuboTV will remain stand-alone choices available to consumers. The alliance will also bring a sports-oriented service with Disney's flagship networksincluding ABC and ESPN.
The deal settles a continuous legal conflict over the Venu Sports streaming service between FuboTV, Disney, Fox, and Warner Bros. Discovery. Disney has also promised the new company a $145 million term loan, set to be mathematically matured in 2026.
After the announcement, FuboTV's stock jumped dramatically, a reflection of great investor faith in the merger's ability to increase market competitiveness and propel operational efficiency. Aiming to increase customer options and confirm the company's presence in the fast changing streaming sector, the transaction combines the qualities of both platforms.
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