- Disney has agreed to combine Hulu and other streaming assets with Fubo.
- Fubo is an exclusively sports-oriented streamer that will manage the new entity.
- Disney will own 70% of the combined streaming company.
- Fubo has agreed to drop its lawsuit against ESPN's Venu Sports platform.
Disney (DIS) stock added 1.3% early on Monday after the media giant announced a deal to merge its Hulu + Live TV business with Fubo’s (FUBO) sports streaming service. Disney will own a 70% controlling share of the combination, which will remain under the Fubo brand and stock.
Disney stock rose 1.3% on the news, while Fubo saw its share price surge 240% to $4.90 per share by the afternoon. DIS stock trades near $112 at the time of writing.
Wall Street is optimistic on Monday after The Washington Post reported that Trump advisors are attempting to restrict which sectors are subject to Trump’s worldwide tariff policy that may be implemented as soon as later this month following his inauguration on January 20.
The Dow Jones Industrial Average (DJIA), which includes Disney stock, has risen 0.15% at the time of writing, while the NASDAQ zooms up more than 1%.
Disney stock news
Fubo runs a sports-focused streaming platform that is unique in that it provides users with access to nearly all major sports broadcasts rather than the current segmented industry norm, wherein users have to subscribe to multiple streaming services in order to watch all the matches for a particular league.
Sports is the most expensive tv programming, so Fubo offerings cost between $33 and $110 a month with the average bundle costing above $80. This starkly contrasts with Hulu, which runs between $10 and $19 per month and offers sitcoms and other entertainment programming.
The merged companies will have more than 6.2 million subscribers worldwide and immediately be cash-flow positive, according to Disney, something that has been difficult for Fubo to achieve on its own. All current offerings under Hulu + Live TV and Fubo will continue, but Fubo will produce a new tier of content that includes Disney assets like ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.
Current Fubo management will run the combined entity. As part of the agreement, Fubo has agreed to settle its litigation against ESPN, FOX and Warner Bros. Discovery in regard to their Venu Sports platform. In connection with that lawsuit, Disney, FOX and Warner Bros. Discovery will make a $220 million cash payment upon completion of the merger.
Disney has agreed to loan Fubo $145 million in 2026 and will pay Fubo $130 million if the merger fails to receive regulatory approval.
Unrelated, but also quite positive for Disney shareholders, “Mufasa: The Lion King” led the first weekend of 2025’s box office receipts. The film, a prequel to 1994’s Lion King, brought in $23.8 million in receipts.
Disney stock forecast
Disney stock has retreated since reach resistance near $118 at the start of December. Now following a period of consolidation above $110, the stock looks poised for a run at the March/April 2024 resistance point near $123.50.
The 13-week Simple Moving Average (SMA) has separated itself from its 26 and 52-week counterparts, demonstrating that an uptrend is still in motion. The Relative Strength Index (RSI) is also below overbought levels, so the current price structure would seem to be a decent entry point.
DIS daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD retakes 0.6000 on the road to recovery amid US-China trade war
AUD/USD is off the five-year low but remains heavy near 0.6000 in the Asian session on Monday. The pair continues to suffer from a US-China trade war as US President Trump said that he would not do a deal with China until the US trade deficit was sorted out.
USD/JPY attempts tepid recovery above 146.00
USD/JPY kicks off the new week on a weaker note, though it manages to stage a tepid recovery above 146.00 early Monday. The global carnage, amid the mounting risk of a recession and a trade war led by Trump's sweeping tariffs, keeps the safe-haven Japanese Yen underpinned at the expense of the US Dollar.
Gold holds the bounce above $3,000 amid Asia risk-off profile
Gold price recovers ground above $3,000 in the Asian session on Monday. The global market turmoil extends and hence, Gold buyers manage to find their feet as trade war and recession risks escalate and revive the haven demand for the yellow metal after Friday's 'sell everything' mode.
Bitcoin could be the winner in the ongoing trade war after showing signs of decoupling from stocks
Bitcoin traded above $84,000 on Friday, showing strength despite the stock market experiencing significant declines. The market reaction stems from United States President Donald Trump's clash with the Federal Reserve Chairman Jerome Powell over interest rate decisions.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.