Disney deal barely clarifies its TV picture

FuboTV

07/01/2025 16:48

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Saba
       NEW YORK, Jan 7 (Reuters Breakingviews) - Boss Bob Iger
is injecting Hulu’s struggling live-TV bundle into the $2 bln
owner of streaming service Fubo and taking a 70% stake. The
transaction helps clear the way for a separate sports-package
JV, but does little to solve the real problem: fast-fading
broadcast television.
        
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    CONTEXT NEWS
    Walt Disney said on Jan. 6 it would merge its Hulu + Live TV
with FuboTV, a rival streaming service and own 70% of the
enlarged company, which will continue to trade on the New York
Stock Exchange.
    As part of the transaction, Disney has committed a $145
million loan to FuboTV. Also, in conjunction with the agreement,
Fubo settled litigation related to Venu Sports, a joint venture
formed by Disney, Fox and Warner Bros Discovery. The owners of
Venu will pay Fubo $220 million in cash.
    Centerview Partners advised Disney on the deal, while Wells
Fargo and Evercore served as financial advisors to Fubo.

 (Editing by Jeffrey Goldfarb and Pranav Kiran)
 ((For previous columns by the author, Reuters customers can
click on  SABA/ 
jennifer.saba@thomsonreuters.com))