Disney Acquires Majority Stake in Fubo, Creating Major Pay-TV Rival

BURBANK, Calif. — Disney has finalized its acquisition of a majority stake in Fubo, establishing itself as the sixth-largest pay-TV operator in the U.S. This merger, combined with Hulu + Live TV, brings nearly 6 million subscribers in North America under its umbrella. Both Fubo and Hulu + Live TV will remain separate services, allowing consumers to choose between them.

The deal significantly enhances Disney’s competitiveness against YouTube TV in the fast-growing internet-delivered pay-TV market. YouTube TV recently surpassed 10 million subscribers, partly fueled by popular bundles, including the NFL Sunday Ticket.

Following the acquisition, Disney will hold a 70% interest in the new entity, while Fubo shareholders will maintain the remaining 30%. Fubo’s co-founder and CEO David Gandler will continue to lead the combined business. The companies expressed optimism about the synergies expected from this deal, which will also result in improved advertising and marketing strategies.

Fubo, initially launched in 2015 as a sports-centric pay-TV service primarily focusing on soccer, has a legacy of innovation in live streaming. Andy Bird, Chair of the Board of Directors, commented on the merger, stating, “It is a privilege to join Fubo at such a transformative time for the company.” The change comes amidst ongoing negotiations between Disney and YouTube TV over content distribution, which could impact viewers in the middle of major programming seasons.

Disney and Fubo aim to leverage this merger to provide more flexible programming packages and to optimize advertising solutions, a contrast to their competitors in the market. Disney also noted that it would lend Fubo $145 million, demonstrating its commitment to the venture.

This acquisition comes at a time when the television landscape is rapidly evolving, and companies are striving to adapt. As the fight for online streaming supremacy heats up, Fubo’s unique technology will become critical in maintaining its market position.

Looking ahead, both Disney and Fubo are optimistic about the future and the potential to create a powerful streaming ecosystem. Gandler said, “We believe this combination delivers the scale, stability, and strategic clarity to create lasting value for consumers and shareholders.”