Disney is merging Fubo with Hulu + Live TV

Cable is back—it’s just disguised by a lot of nonsense words like Hulu, Fubo, and Venu now. Even though, put together like that, those names sound more like off-brand Teletubbies than major players in the entertainment sector, all three are about to shake up the streaming wars in a big way. Per The Hollywood Reporter, Hulu parent Disney and live TV provider Fubo announced today that they were combining their services in a surprise deal. This specifically regards the Hulu + Live TV add-on; regular Hulu streaming services and originals will remain unchanged.

Former competitors Hulu + Live TV and Fubo will still be offered to consumers separately, but will now be traded together publicly under the Fubo name. Disney will control 70% of the venture, but it will be run by Fubo CEO and co-founder David Gandler. 

When the deal closes, it will create major competition for other nü cable providers like YouTube TV, which currently leads the field with around 8 million subscribers. Per THR, Hulu + Live TV and Fubo were sitting at 4.6 million subscribers and 1.6 million subscribers respectively, giving the new venture a combined total of approximately 6.2 million users overall. 

Adding another Teletubby-esque name to the mix, the deal will also end Fubo’s lawsuit against the Venu streaming service (it’s getting a little ridiculous, guys). That other competitor would have combined Disney and Warner Bros.’ sports channels with ABC, Fox and Fox Sports 1. Fubo initially blocked the intended fall launch of the service over anti-trust concerns, knocking it out for the entire NFL season.

Now, Disney, Fox, and WBD will pay Fubo a combined $220 million, with Disney providing an additional $145 million loan through 2026. If the deal doesn’t go through, Disney is also on the hook for a $130 termination fee. Cable is dead; long live cable.