FuboTV Stock Skyrockets 247% as Disney Merger Creates Streaming Powerhouse
Staff Editor FuboTV Stock Soars 247% Following Disney Deal Announcement
In a groundbreaking move that has sent shockwaves through the streaming industry, FuboTV’s stock skyrocketed by an astounding 247% following the announcement of a major deal with Disney. The agreement, which involves merging FuboTV’s streaming service with Hulu’s live TV subscription service, has not only resolved ongoing litigation but also includes significant financial commitments from Disney to FuboTV.
Under the terms of the agreement, Disney will acquire a 70% stake in the newly formed company, which will combine FuboTV’s streaming service with Hulu’s live TV offering. The merged entity is set to boast an impressive 6.2 million subscribers in North America, positioning it as the sixth largest pay-TV service and the second-largest all-digital TV service in the region.
Justin Warbrooke, Disney’s executive vice president, highlighted the deal’s potential, stating, “This merger will significantly enhance our offerings and provide consumers with greater flexibility in their viewing options.”
The market response to the announcement was swift and dramatic. FuboTV’s stock price surged to as high as $4.99 per share before stabilizing, marking its highest level since September 2022. Disney’s stock also saw a modest increase of up to 1.5%, reaching an intraday high of $112.85.
The deal also brings an end to the legal disputes between Fubo and Disney, FOX, and Warner Bros. Discovery. As part of the settlement, the owners of Venu Sports, a yet-to-be-launched sports streaming platform, will pay FuboTV $220 million in cash. Additionally, Disney has committed to providing Fubo with a $145 million term loan in 2026.
Looking ahead, Fubo plans to continue operating independently and aims to launch its own sports and broadcasting service, which will include Disney’s extensive portfolio of sports and broadcast networks such as ESPN, ABC, Disney Channel, FX, National Geographic, and Freeform.
While the recent surge is undoubtedly positive news for FuboTV, it’s worth noting that the company’s shares are still down about 50% from its IPO price of $10 per share in October 2020. Nevertheless, this deal marks a significant turning point for the streaming service and could potentially reshape the landscape of digital TV offerings.
As the streaming wars continue to intensify, this merger between FuboTV and Disney’s Hulu live TV service represents a major shift in the industry, one that competitors and consumers alike will be watching closely in the coming months.
