Fubo, a popular Live Sports TV streaming service, announced Tuesday that its shareholders have approved a deal with Disney by combining Fubo and Hulu Live TV.
The agreement, originally announced in January, brings businesses closer to the final decision on a deal that is expected to disrupt the streaming industry by pose a much bigger threat to their bigger rival, YouTube. YouTube TV reportedly has around 10 million subscribers now, most of which are live sports-related content. With Hulu Live TV and Fubo together, the merger is a step towards filling that competitive gap with around 6 million subscribers.
Plus, if it runs well, it can offer sports fans more flexible options. For example, sources suggest that Fubo may be exploring the idea of introducing a new Hulu-branded package as a streamer perk, featuring access to Disney trioes (Disney+, Hulu, and ESPN) at no additional cost. The company recently announced the launch of a low-cost, skinny sports-only package.
However, the approval obtained at FUBO shareholders’ meeting on Tuesday awaits regulatory approval. This is because this transaction will create greater entities and influential market competition, reducing the number of independent streaming players.
Once the transaction is complete, Disney owns approximately 70% of FUBO. However, perhaps with these regulatory approvals in mind, Fubo promises that it will continue to be available to viewers as an independent product. That said, Disney has consolidated the unit under a single leader. FUBO co-founder and CEO David Gandler will oversee the newly merged Fubo and Hulu Live TV operations.
