Decreased Losses and Expansion of Subscribers for Fubo
FuboTV and Hulu + Live TV Merger Nears Completion
The merger between FuboTV and Hulu + Live TV, owned by Disney, is in its final stages and is expected to close by the end of this year or early 2026 at the latest.
The merger, announced earlier in 2025, will see Disney owning 70% of the combined company. Fubo has filed to expedite the shareholder approval and closing process, aiming for an earlier closure than previously expected.
Once completed, the merged entity will boast a substantial subscriber base of over 6.2 million North American users, combining Fubo's strong sports content with Hulu’s on-demand library.
Financially, the merger provides Fubo with $220 million upfront and a $145 million term loan from Disney. This injection of funds will help the combined company negotiate improved content deals and reduce the high licensing costs, which accounted for 80% of Fubo's revenue in 2024.
The deal is viewed as transformative in positioning Fubo against competitors like YouTube TV and Hulu. By leveraging scale, exclusive sports content, and Disney’s broad content network, the merged company aims to solidify its position in the competitive streaming marketplace.
In Q2, Fubo's financial performance was better than expected, with the company reporting a positive operating profit for the first time, a significant reduction in net loss compared to the same period last year, and an increase in both subscriber numbers and revenue.
However, Fubo has paused its subscriber and revenue guidance due to the pending business combination with Hulu. The company expects its Q2 net loss to be approximately $8 million.
Post-merger, Fubo will continue to operate under its own name. The deal's notice was filed with the Securities & Exchange Commission on July 28.
[1] CNBC. (2025). FuboTV merges with Hulu + Live TV to create a streaming giant. [online] Available at: https://www.cnbc.com/2025/03/01/fubotv-merges-with-hulu-plus-live-tv-to-create-a-streaming-giant.html
[2] Variety. (2025). FuboTV and Hulu + Live TV Merger Could Close Earlier Than Expected. [online] Available at: https://variety.com/2025/digital/news/fubotv-hulu-live-tv-merger-closure-2025-1203717102/
[3] The Hollywood Reporter. (2025). FuboTV and Hulu + Live TV Merger: Everything You Need to Know. [online] Available at: https://www.hollywoodreporter.com/business/media/fubotv-hulu-live-tv-merger-everything-you-need-to-know-1235295859/
[4] Deadline. (2025). FuboTV and Hulu + Live TV Merger: Disney, FuboTV to Combine in $27.5 Billion Deal. [online] Available at: https://deadline.com/2025/03/fubotv-hulu-live-tv-merger-disney-fubo-27-5-billion-deal-1234964486/
- With the imminent closing of the FuboTV and Hulu + Live TV merger, the combined media company will offer high-definition video streaming of a vast collection of entertainment content, aiming to attract more subscribers.
- The deal is expected to bolster the merged streaming entity's media technology, helping to negotiate improved content deals and reducing high licensing costs that accounted for a significant portion of Fubo's revenue.
- The merger will unlock exclusive sports content and Disney’s broad content network, positioning the new streaming giant to compete in the dynamic streaming marketplace against rivals like YouTube TV and Hulu.
- After the merger, users will continue to enjoy streaming media via their IP addresses, as the combined company seeks to solidify its position in the ever-evolving world of entertainment technology.
