Shares of Fubo TV (FUBO) are up more than 24% in premarket trading on Wednesday following the announcement the company has successfully merged itself with Disney’s (DIS) Hulu + Live TV business.
Disney will have the controlling stake of 70% in the newly combined company, with existing Fubo shareholders holding about 30% interest.
The combined business expects to realize cost, revenue, and operational synergies through content cost savings, flexible programming packaging, advertising optimization, and sales and marketing opportunities.
Fubo and Hulu + Live TV will continue to be available to consumers as separate and distinct services, the companies said. Fubo’s advertising sales group will transition to Disney’s advertising sales organization.
The combined company will be led by Fubo co-founder and CEO David Gandler, and former Disney chairman Andy Bird has been chosen to chair the new Fubo’s board.
All of Fubo’s issued and outstanding shares of common stock were automatically converted into Class A common stock on a 1:1 basis, which continues to trade on the NYSE under the “FUBO” ticker.