In a surprising deal announced on Monday, Disney is set to combine its Hulu Live TV business with Fubo, the live TV streaming service known for its extensive sports coverage. Under the terms of the deal, Disney will own about 70% of Fubo, which will continue to be available to viewers as a separate offering.

Walt Disney Co. and streaming provider FuboTV Inc., are nearing a deal to combine their online live TV businesses, according to people familiar with the matter.

Hulu is critical to Disney's (NYSE: DIS) streaming strategy, but the Hulu Live cable business wasn't part of those long-term plans. Instead of shutting it down, Bob Iger traded Hulu Live for a 70% stake in Fubo (NYSE: FUBO),

Shares of the Disney (DIS) gained 24.4% in 2024, narrowly edging out the S&P 500’s ($SPX) 23.3% gain. While Disney stock delivered great returns, what stood out was the entertainment giant’s ongoing transformation.