The deal will allow Fubo to create a new sports and broadcast service that can carry Disney’s sports networks, including ABC, ESPN, ESPN2, ESPNU, SEC Network, ACC Network, ESPNEWS, and the streaming service ESPN+.
Hulu + Live TV will continue to be offered as part of Disney’s package of streaming services.
Fubo representatives said at a shareholder presentation on Jan. 6 that the new Fubo Hulu + Live TV business would earn more than $6 billion annually. Fubo currently earns about $1.6 billion in annual revenue.
At the same presentation, Fubo stated that it will remain 30 percent owned by its shareholders and will continue to be publicly traded on the Nasdaq stock exchange.
As part of the agreement, Fubo asked a federal district court on Jan. 6 to dismiss its lawsuit against Disney and ESPN relating to Venu, the sports streaming service planned by Disney, Fox, and Warner Bros. Discovery.
Also as part of the deal, Disney, Fox, and Warner Bros. Discovery will make a $220 million “aggregate cash payment” to Fubo. Disney will provide a $145 million “term loan” to Fubo in 2026.
If the planned transaction falls through, Fubo will be owed a termination fee of $130 million.
Launched in 2015 as a soccer streaming service, Fubo has expanded to serve 1.61 million paid subscribers in North America alone. It broadcasts more than 55,000 live sporting events and carries news and entertainment networks.
In its latest quarterly earnings report, filed with the U.S. Securities and Exchange Commission on Nov. 1, 2024, Fubo said it recorded a net loss of $52.8 million in the third quarter of 2024.
In Disney’s latest earnings report, filed on Nov. 14, 2024, the company reported a net income of $5.78 billion for fiscal year 2024. That was an increase from the $3.4 billion it reported in fiscal year 2023.
The Epoch Times reached out to Disney and Fubo representatives for comment but did not receive a response by publication time.
