Disney (DIS) will combine its Hulu + Live TV business with sports broadcaster FuboTV (FUBO) in the first important media negotiation move of 2025.

According to press releaseDisney will control 70% of Fubo. The sports streamer’s shareholders will own the remaining 30% of the combined business, which will operate under the public company name Fubo.

In conjunction with the transaction, Fubo settled all disputes with Disney, Fox (FOX), and Warner Bros. Discovery (WBD) related to Venu Sports, the previously announced sports streaming platform announced by the trio.

Fubo shares jumped nearly 250% on Monday after the announcement. Disney shares were little changed while Fox and WBD shares rose about 1% and 3%, respectively.

The combination of the two companies will form one of the largest providers of digital pay TV as consumers look for cable alternatives amid increased cord-cutting.

Fubo, which offers users access to live TV channels over the Internet, has focused primarily on sports and news. Hulu + Live TV, categorized as a cable replacement option, similar to YouTube TV, allows users to stream live from around 100 live TV channels across sports, news and entertainment.

In an investor call after the announcement, Fubo said the combined company is expected to “become immediately cash-flow positive,” with more than 6.2 million subscribers in North America and more of $6 billion in revenue.

The deal will also provide Fubo with $220 million in immediate cash, plus $145 million in committed financing available in January 2026 to improve liquidity and ensure continued investments.

“We are delighted with today’s results,” said David Gandler, Fubo’s co-founder and CEO, who will also lead the new business. “The increase in scale means we have the flexibility to pursue diverse growth strategies, opening up a range of opportunities, both domestically and internationally.”

Gandler added that while Fubo will continue to focus on sports and news, it will now be able to offer even more consumption options, including access to ESPN+ through modified distribution deals with Disney and Fox.

“Fubo has the potential to create slimmer sports, news and entertainment packages based on consumer needs,” he said, noting that Hulu + Live TV will remain an entertainment-focused cable replacement service.

Overall, Fubo’s management team said the deal will create a “very competitive and exciting environment” and that the company is now “gearing up” for its growth stage.

The story continues

last year, Fubo’s antitrust lawsuit against Venu Sports Disney, Fox and WBD allegedly used their “iron grip” on commercially critical sports content to extract billions of dollars from distributors and consumers.

As a much smaller player, Fubo struggled with high content costs and the ability to stem subscriber loss and compete adequately in the market, hence the start of the lawsuit.

The media giants, according to Fubo’s original complaint, profited by “bundling” sports with less desirable content, forcing Fubo to air “unwanted and expensive content” and preventing the company from offering packages that customers really wanted.

Last summer, a judge temporarily blocked the launch of Venu, citing antitrust concerns. With Fubo now settling its litigation, the service is expected to face significantly fewer hurdles ahead of its planned launch.

The three companies first announced the joint venture last yearwith one expected price of $42.99 per month. The service will gather its respective sports rights tables and it comes as media companies face pressure from investors to scale their streaming services and achieve profitability.

Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].

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