Key Points
- David Gandler will serve as the CEO of the newly-combined business, which pairs Fubo and Hulu with Live TV.
- The new business, also called Fubo, has more than 6 million pay TV customers.
- Fubo has changed its fiscal calendar to align it with Disney.
The Walt Disney Company and Fubo have completed a merger that integrates the streaming pay television products of both companies, they announced on Wednesday.
The newly-combined entity, which involves Fubo and Hulu with Live TV, creates a new business that serves more than 6 million streaming pay TV customers in North America, executives at Fubo said in a news release. Fubo’s shareholders approved the deal in September.
The combination of the products has been in the works since January, when Fubo agreed to end an antitrust lawsuit against Disney and two other media companies over a sports-centric streaming joint venture called Venu Sports, which ultimately did not materialize. The tie-up between Disney and Fubo was characterized as a separate event, unrelated to the lawsuit, but was clearly influenced by it.
Moving forward, Fubo’s senior executives will join the newly-formed entity that consists of both streaming pay TV products. Fubo and Hulu with Live TV will continue to exist as separate products and apps for now.
Fubo will serve the hard-core sports fan who wants access to premium live broadcast and cable television networks and complementary features like artificial intelligence-powered clips and sports data, while Hulu with Live TV will cater to the interest of general TV consumers who watch a variety of channels that include cable news, sports and general entertainment.
“Since Fubo’s founding a decade ago, our vision has always been to build a consumer-first streaming platform defined by innovation and value,” said David Gandler, the co-Founder and CEO of Fubo. “Together with Disney, we’re creating a more flexible streaming ecosystem that gives consumers greater choice, while driving profitability and sustainable growth.”
“We’re also proud to reward our retail shareholders who have supported Fubo’s mission from the very beginning,” Gandler continued. “We believe this combination delivers the scale, stability and strategic clarity to create lasting value for consumers and shareholders, and indelibly impact the future of live streaming.”
On the financial side, Disney will retain a 70 percent controlling interest in the newly-formed company, which will effectively operate as a subsidiary business. Fubo’s existing shareholders will own the rest.
Disney will also award Fubo a $145 million loan next year that will help with programming, distribution, marketing and other elements of the business.
Gandler will serve as the CEO of the new company, which will continue to use the Fubo name, while Fubo’s advertising sales team will move over to Disney.
A new Board of Directors will oversee the Fubo business, led by a Chairman Andy Bird, a British media executive with ties to Disney.
“It is a privilege to join Fubo as Chairman at such a transformative time for the company,” Bird said in a statement. “Today’s announcement brings together two industry leading brands and a compelling set of resources that uniquely position us to meet the evolving needs of today’s consumer.”
Other board members will include Jonathan Headley, Jim Lygopoulos, Debora OConnell, Cathleen Taff, Justin Warbrooke, Daniel Leff and Ignacio “Nacho” Figueras.
Fubo is also changing how it reports its financials to more closely align it with Disney, whose fiscal year ends in September. To that end, Fubo said its fiscal year now ends on September 30, 2026. Fubo is expected to report its quarterly earnings on November 3, while Disney will report its earnings on November 13.
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