fuboTV (FUBO) Business Combination summary

Deal rationale and strategic fit

• The combination of Hulu + Live TV and Fubo aims to create a leading consumer-first live TV streaming company with 6.2 million North American subscribers, enhancing consumer choice, flexibility, and innovation.

• The deal supports a super aggregation strategy, maintaining both Fubo and Hulu + Live TV brands to offer more choice and packaging flexibility.

• Fubo will focus on sports and news, while Hulu + Live TV remains entertainment-focused, allowing tailored offerings for different consumer segments.

• The partnership unlocks new growth opportunities domestically and internationally, leveraging Disney's global reach and settling all litigation between Fubo, Disney, FOX, and Warner Bros. Discovery.

• The combined entity will be well-capitalized and immediately cash flow positive, with Fubo's management leading the business.

Financial terms and conditions

• Disney will own 70% and Fubo shareholders 30% of the combined company, which will operate under the Fubo name and management.

• Disney, FOX, and Warner Bros. Discovery will make a $220 million cash payment to Fubo at signing, and Disney will provide a $145 million term loan in January 2026.

• Fubo will issue Class B Common Stock to Disney, representing a 70% voting interest.

• A $130 million termination fee is payable to Fubo if the deal fails to close due to regulatory issues, with a $50 million termination fee under certain other circumstances.

• The combined company is projected to have over $6 billion in revenue at close, with revenue expected to exceed $7.5 billion and adjusted EBITDA over $550 million by 2028.

Synergies and expected cost savings

• Targeted run-rate synergies of $120 million or more are expected from content cost savings, advertising optimization, and operational efficiency.

• Significant synergies are anticipated on the content/programming side, enabling improved content licensing terms and better gross margins.

• Additional opportunities exist in advertising, with further synergies possible post-close.

• Scale is expected to drive more competitive licensing agreements and cost efficiencies.

• The company is projected to be immediately cash flow positive after closing.