Disney and Fubo Join Forces to Challenge YouTube TV and Settle Venu Lawsuit

Fubo has struck a lucrative deal worth $220 million with Disney, Fox, and Warner Bros. Discovery to resolve an antitrust lawsuit. The agreement aims to establish a colossal multichannel streaming service that rivals only YouTube, setting the stage for the Venu service to flourish.

Walt Disney Co. announced on Monday that it will combine its Hulu With Live TV streaming service with rival Fubo, a move poised to disrupt the streaming TV landscape.

Disney is set to dominate 70% of a new pay-TV joint venture with Fubo taking the remaining 30%, all while the collaboration will function under the Fubo name, keeping its brands distinct and striking deals for both services separately from Disney.

As part of the deal, Disney, Fox, and Warner Bros. Discovery are set to deliver a substantial cash injection of $220 million to Fubo, alongside Disney’s promise of a $145 million term loan to be granted in 2026.

This deal could dramatically reshape the virtual multichannel video provider landscape, positioning the new entity to challenge YouTube TV’s dominance, which boasted 8 million subscribers last year compared to Hulu + Live TV’s 4.6 million and Fubo’s 1.6 million, adding up to a formidable 6.2 million combined subscriptions.

Related: YouTube TV vs Hulu Plus Live TV: Which one is better?

During a conference call on Monday morning, Gandler confidently asserted that the joint venture is poised to thrive in the competitive landscape against its rivals

Once the deal is finalized, the company will maintain the unique identities of both Hulu + Live TV and Fubo, with Hulu continuing to shine in the expansive Disney bundle. At the same time, Fubo independently secures its carriage agreements, paving its path in the streaming landscape.

Disney and Fubo anticipate wrapping up their deal in the next 12 to 18 months, building excitement for what lies ahead. This deal not only stops Fubo’s legal battle with the Venu sports streaming service but also opens the door for Venu—a tantalizing bundle featuring Disney’s ESPN, ABC, Fox, and Warner Bros. Discovery’s sports channels—to move forward.