Disney–Fubo merger shakes up streaming wars: A new rival emerges against YouTube TV

In a bold move that’s reshaping the streaming television landscape, Disney and Fubo have officially sealed their long-anticipated merger, combining Hulu + Live TV with Fubo’s operations to form one of the largest internet-based pay-TV providers in the United States.

The deal, finalized on Wednesday, marks the birth of a major new contender in the live TV streaming arena—boasting nearly six million subscribers across North America. This makes the newly combined company the second-largest player in the market, sitting just behind YouTube TV, which commands an estimated 10 million subscribers.

The partnership—initially announced in January—signals Disney’s deepening investment in the live TV streaming sector, despite an industry increasingly fragmented by cord-cutting and consumer fatigue. The entertainment giant now holds a commanding 70 percent ownership stake in the new entity, while Fubo shareholders retain the remaining 30 percent. Both Hulu + Live TV and Fubo will continue to operate as distinct services, ensuring that customers retain flexibility in their streaming options.

According to Fubo’s co-founder and CEO, David Gandler, the merger represents the culmination of a decade-long vision. “Our goal has always been to create a consumer-first platform that blends innovation and value,” he said. “Together with Disney, we’re shaping a more dynamic ecosystem that puts viewer choice and profitability at the center.”

The deal follows a dramatic turn of events that began with Fubo’s 2024 lawsuit against Disney, Fox Corporation, and Warner Bros. Discovery over their now-defunct joint sports streaming venture, Venu Sports. Fubo accused the trio of anticompetitive behavior aimed at sidelining its growth. The lawsuit ended in a $220 million settlement, paving the way for the current merger and effectively transforming Fubo from an industry disruptor to a strategic Disney ally.

Industry analysts say the merger gives Disney a powerful new weapon in its streaming arsenal, allowing it to compete more aggressively with YouTube TV while leveraging Hulu’s deep content catalog and Fubo’s sports-centric audience base. The combined company will also benefit from a $145 million term loan from Disney to support operational expansion and technology integration through 2026.

A newly structured board has also been announced, led by Andy Bird, former chairman of Walt Disney International, who now serves as independent chairman. Other members include Fubo’s Gandler and senior Disney executives such as Debra OConnell, Cathleen Taff, Jim Lygopoulos, and Justin Warbrooke.

“This partnership unites two powerful brands with complementary strengths,” Bird said. “Together, we can deliver unmatched flexibility, better content access, and smarter pricing for consumers navigating the modern streaming space.”

While the merger is being celebrated as a win for innovation, it has also attracted scrutiny from regulators and lawmakers. Some have raised antitrust concerns, warning that consolidation among streaming giants could limit consumer choice and drive up prices. Still, both companies maintain that the merger will promote competition by offering alternative packages and smarter advertising solutions.

The new venture enters the market amid rising tension between Disney and Google, whose ongoing carriage dispute threatens to pull Disney channels such as ABC and ESPN from YouTube TV. With the merger, Disney appears to be hedging its bets—strengthening its own live TV distribution capabilities as negotiations with Google remain uncertain.

For Fubo, which started as a niche sports-streaming startup in 2015, the partnership with Disney represents both validation and reinvention. For Disney, it’s a strategic power play to stay ahead in an industry where traditional cable continues to fade and streaming bundles dominate the future of television.

FAQ Section

1. What does the Disney–Fubo merger mean for consumers?
The merger creates one of the largest live TV streaming platforms, giving subscribers more channel options, sports coverage, and flexible pricing plans.

2. Will Hulu + Live TV and Fubo remain separate services?
Yes. Both services will continue to operate independently, though they’ll benefit from shared infrastructure, advertising, and content deals.

3. How many subscribers will the new Disney–Fubo platform have?
Combined, the services boast nearly six million subscribers across North America, making it the second-largest live TV streaming provider.

4. Why did Disney and Fubo merge?
The merger followed a settlement of Fubo’s lawsuit against Disney and other media giants, paving the way for collaboration to strengthen Disney’s streaming ecosystem.

5. Will prices increase after the merger?
Both companies have emphasized flexibility and affordability, but prices may vary as new packages and content tiers are introduced.