Hulu + Live TV and Fubo will merge, allowing two new sports services to launch

What does the deal mean for Hulu and Fubo?

While the announcement says that Hulu + Live TV and Fubo will be combined, that doesn't mean that the two services will be rolled into one, at least for now. Disney will own 70% of Fubo and the services will be under the same company, led by Fubo CEO David Gandler. Hulu + Live TV and Fubo will continue to be available to subscribers as separate services. 

“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility,” said Justin Warbrooke, Executive Vice President and Head of Corporate Development for The Walt Disney Company.

Disney, Fox and Warner Bros. new sports streaming service

Along with putting Hulu + Live TV and Fubo under the same umbrella, the partnership is also giving both Disney and Hulu space to create new sports-focused streaming services.

Disney, Fox and Warner Bros. shared plans to launch a sports streaming service, Venu Sports, early last year. However, the deal was blocked when Fubo filed an antitrust claim against the companies. The new deal between Disney and Fubo has put an end to the legal battle.

"All litigation between Fubo and Disney has been settled," the joint announcement stated. 

Disney, Fox and Warner Bros can now request that the U.S. Court of Appeals reverse the decision to block the launch of Venu Sports. 

The partnership is also giving Fubo an opportunity to launch its own new sports service. The new streamer will include Disney-owned properties including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS and ESPN Plus. 

It's likely that both Disney and Fubo were motivated to push a deal through quickly to move forward with plans to launch the smaller services after DIRECTV shared plans to launch its own sports-centered package in an announcement about its new free streaming service.