The second-largest digital pay-TV provider is on the verge of being created! According to reports, Disney (DIS.US) is nearing a merger agreement with FuboTV (FUBO.US).
1min read According to sources, Disney (DIS.US) and streaming provider FuboTV (FUBO.US) are close to a deal to merge their online live TV businesses. As part of the agreement, Disney will combine its Hulu+ Live TV business with Fubo to form a new joint venture, with Disney owning 70% and FuboTV the rest. The transaction does not include Hulu's video subscription business. One source said the TV venture would continue to operate under the Fubo and Hulu+ Live TV brands. The services would together form the second-largest digital pay-TV provider, with about 6 million users, behind YouTube TV. As part of the deal, FuboTV is planning to drop its legal claims against Disney, Fox, and Warner Bros. Discovery over Venu Sports, a sports streaming platform the companies are developing together. If talks don't fall apart, the companies could announce the deal as early as this week. Representatives for Disney and FuboTV didn't immediately respond to requests for comment outside of regular business hours. FuboTV sued Disney, Fox, and Warner Bros. Discovery last year over Venu Sports, claiming the proposed sports streaming joint venture would be anticompetitive. A hearing is scheduled for Jan. 6. FuboTV is a virtual multichannel video distributor, meaning it streams live television channels over the internet, rather than through cable, satellite, or fiber. Hulu's live service is a cable alternative, offering live access to about 100 live television channels, including sports, news, and entertainment. The merger of the two services would be expected to attract more users as customers look for online alternatives to cable. FuboTV will continue to trade publicly, and the stock jumped more than 70% before the market opened Monday, buoyed by the news. The smallest virtual TV operator faces challenges including expensive programming and user attrition. Venu Sports, the upcoming streaming platform being developed by Disney, Fox, and Warner Bros. Discovery, will offer live sports events from major leagues including the NFL and NBA, as well as content from Disney's ESPN and Warner Bros. Discovery's TNT networks.