Disney To Merge Hulu + Live TV Business With FuboTV

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(RTTNews) - Monday, Walt Disney Co. (DIS) announced the decision to merge its Hulu + Live TV business with FuboTV Inc. (FUBO), offering a variety of programming packages. As per the deal, 70 percent of the combined virtual Multichannel Video Programming Distributor or MVPD firm will be owned by Disney, and the rest by FuboTV.

Following the news, FuboTV's stock is surging 118.9 percent, to $3.15, while Disney's stock is trading at $111.72, up 0.51 percent on the New York Stock Exchange in the pre-market hours.

Disney said that it will enter into a new carriage agreement with Fubo, that will help create a new Sports & Broadcast service, featuring Disney's premier sports and broadcast networks.

Additionally, FuboTV has agreed to drop its lawsuit against Disney, Fox Corp., and Warner Bros. Discovery (WBD), claiming Venu Sports to be against the U.S. antitrust law.

Earlier, the court had ruled in favor of FuboTV, issuing an injunction to temporarily suspend the launch of Venu Sports, Reuters notes.

Under the current transaction, Fubo will receive a total payment of $220 million from the three parties as well as a $145 million term loan from the Disney. Additionally, the company will receive a termination fee of $130 million.