- Disney has finalized its acquisition of a 70% majority stake in Fubo, a move that significantly reshapes the streaming landscape.
- The merger combines Fubo with Hulu + Live TV, creating a pay-TV powerhouse with nearly 6 million subscribers, posing a direct threat to YouTube TV.
- Following the announcement, Fubo’s stock surged another 20% in pre-market trading, continuing its dramatic rise in 2025.
- The deal originates from a settlement of Fubo’s 2024 antitrust lawsuit against Disney and other media giants over the now-defunct Venu Sports venture.
A New Streaming Powerhouse Emerges
The streaming wars have a new heavyweight contender. The Walt Disney Company has officially completed its acquisition of a majority stake in Fubo, creating a bulked-up rival in the competitive pay-TV market. The deal merges Fubo with Disney’s Hulu + Live TV service, establishing the sixth-largest pay-TV operator in the United States.
Together, the services boast nearly 6 million subscribers across North America. While both Fubo and Hulu + Live TV will continue to be offered as separate, individually branded services, their combined scale presents a formidable new force in the industry.
Direct Challenge to YouTube TV
This strategic consolidation positions Disney to more aggressively compete with Google’s YouTube TV, the current leader in the internet-delivered pay-TV sector. YouTube TV, which reported passing 8 million subscribers early in 2024, is now estimated to be approaching 10 million, largely fueled by its exclusive NFL Sunday Ticket package.
The timing of the Fubo deal is critical, as Disney and YouTube TV are currently embroiled in a tense carriage dispute. With their contract expiration looming, a potential blackout of major channels like ABC and ESPN threatens to disrupt access to live sports and popular programming for millions of viewers.
From Lawsuit to Landmark Deal
The acquisition has its roots in legal conflict. It stems from a settlement of Fubo’s 2024 antitrust lawsuit filed against Disney, Fox Corp., and Warner Bros. Discovery. The lawsuit centered on the now-shuttered Venu Sports joint venture, which a judge ruled had involved monopolistic behavior intended to squeeze out competitors like Fubo.
Leadership and Future Synergies
Under the new structure, Disney will control 70% of the combined streaming organization, with Fubo shareholders retaining the remaining 30%. In a significant show of confidence, Fubo’s current management team, led by co-founder and CEO David Gandler, will oversee the merged operations of both Fubo and Hulu + Live TV.
The companies anticipate significant financial benefits from the merger, including savings from more flexible programming packages, optimized advertising sales, and marketing efficiencies. To support this new chapter, Disney has committed to providing Fubo with a $145 million term loan.
Fubo Stock Explodes on Acquisition News
Investors have responded with overwhelming optimism. News of the deal’s finalization sent Fubo shares soaring by another 20% in pre-market trading. This surge builds on an already incredible year for the stock, which has tripled in value since the planned acquisition was first rumored in January.
David Gandler celebrated the outcome, stating, “We’re proud to reward our retail shareholders who have supported Fubo’s mission from the very beginning. We believe this combination delivers the scale, stability and strategic clarity to create lasting value for consumers and shareholders, and indelibly impact the future of live streaming.”
Image Referance: https://deadline.com/2025/10/disney-closes-acquisition-of-fubo-youtube-tv-rival-1236601271/