Walt Disney is merging with FuboTV, a U.S.-based sports-focused streaming service company, to combine it with its own Hulu + Live TV.
On the 6th (local time), Disney announced that it had signed the final agreement for the merger with FuboTV. Disney will own 70% of FuboTV's shares.
FuboTV is a provider of sports-centered streaming services with 1.6 million subscribers in North America. Disney stated that with this merger, it will have 6.2 million subscribers in North America.
Through this merger, Disney aims to create a new sports service by combining its networks such as ESPN with the sports services where FuboTV has strengths. The existing content of FuboTV will continue to be provided.
Steen Wobrok, Disney's Vice President, said, "With this merger, Hulu + Live TV and Fubo will strengthen and expand their vMVPD (virtual multichannel video programming distributor) services, providing consumers with more choices and flexibility."
The Wall Street Journal (WSJ) explained, "With this merger, the new company will become the second-largest online pay-TV provider after Google's YouTube TV." Following Disney's merger announcement, FuboTV's stock price surged 253.85% on the New York Stock Exchange that day.
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