fubo Shareholders Approve Hulu + Live TV Deal

Fubo and Disney Merger Approved by Shareholders

Fubo, a widely-used live sports TV streaming platform, revealed on Tuesday that its stockholders have given their consent to the agreement with Disney, effectively merging Fubo with Hulu Live TV.

Deal Details and Industry Impact

The agreement, originally unveiled in January, positions the two companies to finalize a collaboration expected to significantly alter the streaming landscape. This consolidation is projected to elevate Hulu as a more formidable competitor to YouTube.

YouTube TV currently boasts approximately 10 million subscribers, largely attributed to its extensive live sports programming. Combined, Hulu Live TV and Fubo currently serve around 6 million subscribers. Therefore, this merger represents a strategic move to narrow the gap in subscriber numbers.

Potential Benefits for Viewers

Successful integration of the services could provide sports enthusiasts with increased flexibility in their viewing choices. Reports indicate that Fubo is considering a new Hulu-branded package as an incentive for subscribers.

This potential package would include access to Disney’s streaming trio – Disney+, Hulu, and ESPN+ – without incurring additional charges. Recently, the company also launched a more affordable, sports-focused package.

Regulatory Hurdles and Ownership Structure

Despite shareholder approval at Tuesday’s meeting, the transaction remains subject to regulatory review. The creation of a larger entity will inevitably impact market competition by decreasing the number of independent streaming services.

Upon completion of the merger, Disney will hold approximately 70% ownership of Fubo. Acknowledging potential regulatory concerns, Fubo has affirmed its commitment to remaining available as a distinct service.

Leadership Transition

Disney is streamlining operations by placing the combined entity under unified leadership. David Gandler, the co-founder and CEO of Fubo, will assume responsibility for overseeing the operations of both the newly merged Fubo and Hulu Live TV.