Walt Disney is joining its Hulu+ Live TV service with streaming provider Fubo, the companies announced Monday.
The new venture, which will be operated under the publicly traded Fubo company name, will be 70% owned by Disney and the remainder by Fubo shareholders, according to a joint statement.
Hulu+ Live TV and Fubo together have 6.2 million subscribers.
The proposed deal does not include Hulu’s subscription video business, and the TV venture will continue to run under both brands: Fubo and Hulu + Live TV.
“This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility,” Fubo CEO David Gandler said in the statement. “Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow,” added Gandler, who will run the newly merged business.
Fubo and Hulu + Live TV both allow customers to stream live broadcast and cable networks on their connected TVs, mobile phones, tablets, and other internet-connected devices.
The transaction will let Fubo develop a news sports and broadcast service showing Disney’s sports and broadcast networks, including ABC and ESPN. Fubo streams more than 55,000 sporting events annually.
The deal also has Fubo settling its legal claims against Disney and ESPN related to Venu Sports, a streaming platform being devised by Disney, Fox and Warners Bros.
Wall Street applauded the development, with Fubo shares lately surging more than 155% to $4.15 Monday morning and Walt Disney shares gaining 1.1% to $112.30 a piece.
The Associated Press
contributed to this report.
Kate Gibson
Kate Gibson is a reporter for CBS MoneyWatch in New York, where she covers business and consumer finance.
