That moment when the popular kid asks you to bundle:
In an effort to snag subscribers from YouTubeTV, Disney and small-fish sports streamer FuboTV are combining their live television forces to become the second-largest cable dupe in the US, Bloomberg reported yesterday. Fubo’s stock more than tripled on the announcement. As part of the team-up:
Fubo will retain its name and CEO but will reorganize to absorb Disney’s Hulu + Live TV business (which doesn’t include regular ol’ Hulu). Disney will own 70% of the new-and-improved Fubo and will appoint most of its board.
Fubo will go from 1.6 million North American subscribers—near-bottom of the online television provider totem pole—to a combined 6.2 million with Hulu + Live TV (vs. YouTubeTV’s 8 million).
Fubo will also be able to create a new broadcast service and mini sports/news/entertainment bundles with Disney-owned channels, including ESPN and ABC.
Enemies to lovers: Fubo spent last year as Disney’s opp after it sued to block a joint Warner Bros./Fox Corp./ESPN sports streaming bundle called Venu. Under the new deal, Fubo will settle its lawsuit—which would’ve been heard yesterday—for $220 million plus a $145 million loan from Disney. Venu is now expected to resume its launch. Separate bedrooms: Once the deal closes in the next 12 to 18 months, you’ll still access Hulu + Live TV from the Hulu app, and Fubo through the FuboTV app—at least for now. “Having two separate platforms today, obviously, it’s not ideal,” said Fubo co-founder and CEO David Gandler.—ML
