Disney Joins Forces with Fubo: A Strategic Move in the Streaming Market

The Walt Disney Company has clearly stated its ambitions in the area of live sports streaming by announcing today a strategic partnership with the streaming provider Fubo, which is especially known for its sports streaming options. By combining Disney's Hulu + Live TV with Fubo, a new joint venture will be created, in which Disney will hold a 70% majority. The management of the new company will be entrusted to Fubo's management team, while both brands will continue to be available to customers as standalone services. This partnership will see the combined customer base of Hulu + Live TV and Fubo in North America reach more than 6.2 million, making it the second-largest live TV streaming platform after YouTube TV. The deal does not include access to Hulu's on-demand library, but it is intended to 'offer an expanded selection of program packages and attractive pricing models for consumers,' as Disney announced in a press release. FuboTV shares recorded a massive increase of over 120% in early trading on Monday morning. In premarket trading, the shares had already benefited from reports of the planned deal. The stock price of the Walt Disney Company also rose by 1.21%. Justin Warbrooke, Disney's Vice President and Head of Corporate Development, emphasized: 'This combination will allow Hulu + Live TV and Fubo to expand their virtual offerings and provide consumers with more choice and flexibility. We have full confidence in the Fubo management team and their ability to expand the business.' Fubo CEO David Gandler also expressed his enthusiasm, stating that the agreement allows Fubo to effectively scale and strengthen financially to achieve positive cash flows. It was also announced that Fubo would drop its lawsuits against Disney and others over a planned sports streaming service called Venu Sports. These legal actions were based on the assumption that the new offering would violate competition policies and raise prices. However, with the new partnership, Disney and Fubo will create a joint sports and broadcast offering that will provide rich sports content, including the ESPN portfolio.