Fubo Gets Disney Boost; Streamer Settles Venu Suits

The Walt Disney Co. said it will own 70% of Fubo, which, as part of the deal, will operate Disney’s streaming Hulu Plus Live TV, making Fubo the No. 2 virtual multichannel video programming distributor (vMVPD) with 6.2 million subscribers.

The agreement also settles antitrust lawsuits between Disney and Fubo that arose when Disney, along with Fox and Warner Bros. Discovery planned to launch a sports streaming service called Venu that would compete with Fubo. Fubo will be launching a new streaming service featuring Disney’s sports and broadcast channels. 

When Venu was announced, Fubo sued because it was unable to make a deal to stream only the channels those companies own that show sports. A judge saw enough merit in Fubo’s claims to enjoin Venu from launching before the start of football season. 

Litigation with Fox and WBD has been settled as well, with Fubo receiving $220 million from the three Venu partners, Fubo said. Disney will be lending money-losing Fubo $145 million in 2026.

The creation of Venu hurt Fubo stock. When word of the Disney deal got out. Fubo’s stock price more than doubled in early trading, rising to $3.62 a share from $1.33 on Friday.

In addition to settling litigation, the deal gets Disney out of the low-margin vMVPD business, allowing it to focus on its other streaming services, which have turned profitable after years of losses. 

“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility,” said Justin Warbrooke, executive VP and head of corporate development at Disney said in a statement. “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”

Fubo will continue to be run by founder David Gandler.

“This combination enables us 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.

The new Fubo streaming service being created using Disney services will feature networks ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNews, as well as ESPN+.