The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Jennifer Saba
NEW YORK, Jan 7 (Reuters Breakingviews) - Boss Bob Iger is injecting Hulu’s struggling live-TV bundle into the $2 bln owner of streaming service Fubo and taking a 70% stake. The transaction helps clear the way for a separate sports-package JV, but does little to solve the real problem: fast-fading broadcast television.
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CONTEXT NEWS
Walt Disney said on Jan. 6 it would merge its Hulu + Live TV with FuboTV, a rival streaming service and own 70% of the enlarged company, which will continue to trade on the New York Stock Exchange.
As part of the transaction, Disney has committed a $145 million loan to FuboTV. Also, in conjunction with the agreement, Fubo settled litigation related to Venu Sports, a joint venture formed by Disney, Fox and Warner Bros Discovery. The owners of Venu will pay Fubo $220 million in cash.
Centerview Partners advised Disney on the deal, while Wells Fargo and Evercore served as financial advisors to Fubo.
(Editing by Jeffrey Goldfarb and Pranav Kiran)
((For previous columns by the author, Reuters customers can click on SABA/jennifer.saba@thomsonreuters.com))
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