
By Gavin Boyle
Disney has accelerated its timeline to close its acquisition of Fubo, now attempting to finish the deal by the end of 2025 or the first three months of 2026 instead of later next year.
“This [deal] will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility,” said Justin Warbrooke, the executive vice president and head of corporate development at Disney, after the acquisition was announced. “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”
The acquisition will result in Disney owning 70% of the Fubo brand. Though Hulu + Live TV and Fubo will continue to operate as two separate entities, existing under the same parent company will allow them to share resources, such as selling time slots to advertisers who want to reach the sports market.
Disney first announced its desire to acquire ownership of Fubo in January after Fubo blocked the creation of proposed sport-centric streaming service Venu, which would have combined the sports offerings of Disney, Fox and Warner Bros. Discovery into one direct-to-consumer platform. Fubo claimed the service would have been monopolistic and anti-competitive — an argument the FCC believed had credence.
After the initial lawsuit was upheld by the FCC following appeals by Venu’s creators, Disney disbanded the entire effort, while also acquiring Fubo to end all court proceedings.
Related: Fubo CEO Calls Fox-Disney-WBD Sports Bundle ‘Borderline Racketeering’
“This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility…” said Fubo CEO David Gandler after the acquisition was announced. “Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow.”
Disney is now pursuing another sport-centric streaming service through Fubo as the platform pursues deals with non-Disney distributors to expand just how many sporting events its subscribers have access to.
“We are working hard to secure content from non-Disney programmers for the new service,” Gandler said, per Variety. “It is critical for Fubo subscribers that we are able to negotiate content licensing agreements at fair rates and terms. Our goal remains to launch the service for the fall sports season.”
Perhaps the accelerated acquisition timeline comes from Disney’s desire to receive a piece of this pie as soon as possible. A comprehensive sports streaming service remains the holy grail of streaming as live sports remains one of the most popular forms of entertainment. Such a service would allow millions to cut their cable subscriptions which they keep just to watch sports.
Read Next: Disney Merges Hulu+ Live TV With Fubo to End Venu Sports Dispute
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