Hulu and sports-forward streamer Fubo are settling aside some legal differences and teaming up in order to launch yet another new platform for you to subscribe to.
Last year, Fubo filed a lawsuit against Disney (which co-owns Hulu), Fox, and Warner Bros. Discovery last year on grounds that the studios’ plan for Venu Sports, a new sports streaming service, was anticompetitive. But today, Fubo announced that it has reached an agreement with Disney to merge Hulu + Live TV and the entire Fubo platform to create a new multichannel video programming distributor. Going forward, Disney will own about 70 percent of the new venture, which will be headed up by Fubo’s co-founder and CEO David Gandler. Hulu’s core video subscription service will also continue to operate independently.
In a statement about the partnership, Gandler insisted that the deal will enable Fubo 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,” Gandler said.
Though a hearing for Fubo’s previously-filed lawsuit against Disney, Fox, and WBD was scheduled for today, the case has now been dropped because of the new deal. Additionally, Fubo will receive a $220 million payout from Disney, Fox, and WBD. Fubo also noted that Disney plans to provide it with a $145 million this year, and should the entire deal fall apart, Fubo will be due a $130 termination fee.
It wasn’t clear how Disney planned to proceed last summer after a federal judge sided with Fubo and blocked Venu Sports from its planned fall 2024 launch. But now it’s looking like the way forward is going to be a collaborative one.