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FuboTV (NYSE:FUBO) is having a moment. Shares exploded nearly 200% this morning, after news broke that Disney (NYSE:DIS) is merging its Hulu + Live TV business with the sports-focused streamer. Disney now owns 70% of the new venture, with Fubo's CEO David Gandler at the helm. The partnership creates a streaming powerhouse with over 6.2 million subscribers and $6 billion in revenue, making it the second-largest live-TV streaming service behind YouTube TV. Gandler calls it a win for consumers and shareholders, and the market agreesFUBO stock shot to nearly $4.25, recovering from last year's nosedive.
This isn't just another mergerit's a game-changer. Disney's involvement brings ESPN, ABC, and other heavy hitters into Fubo's orbit, while Fubo's sports-first focus gives Disney a new edge in live sports streaming. The deal also ends Fubo's legal beef with Disney, Fox (NASDAQ:FOXA), and Warner Bros. Discovery (NASDAQ:WBD) over their planned Venu Sports service. The settlement doesn't come cheapDisney and its partners are paying Fubo $220 million in cash, plus a $145 million term loan from Disney itself. It's a clear signal that both companies are betting big on this collaboration to dominate the vMVPD (virtual multichannel video programming distributor) space.
For investors, the takeaway is simple: this partnership isn't just about survivingit's about thriving. By leveraging Disney's deep pockets and premium content, Fubo is poised to scale like never before. Meanwhile, Disney secures a foothold in an increasingly lucrative market segment. With fresh revenue streams, legal hurdles cleared, and a renewed focus on growth, the new Fubo-Hulu combo is one to watch as the streaming wars heat up.
This article first appeared on GuruFocus.