Disney and FuboTV on Monday announced a planned merging of Hulu Live + TV and Fubo. Disney will have a 70% ownership stake in Fubo when the deal closes.

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.

The deal will create a streaming multichannel video service that is second only to YouTube in scale, while potentially allowing the Venu service to move forward.

Disney’s Hulu + Live TV and sports streaming service Fubo are combining in a deal that will also see the settlement of a lawsuit against the creation of Venu Sports.

Fubo will be combined with Hulu's live TV service and offer a new streaming package with ABC and ESPN channels.

Disney announced a deal with pay-TV provider Fubo to combine Hulu + Live TV with Fubo's operations in a joint venture, ending Fubo's Venu lawsuit.

Walt Disney Co said on Monday it would merge its Hulu + Live TV business with smaller rival FuboTV , removing a significant hurdle to the launch of its sports streaming venture with Fox Corp and Warner Bros Discovery .

Disney’s Hulu + Live TV service and Fubo will merge, creating one of the country’s largest pay TV providers, the companies announced Monday in a surprise deal that will potentially allow the Venu Sports streaming service to move forward.

Disney and Fubo have reached an agreement to merge Hulu + Live TV with FuboTV, the companies announced via a press release. This will create a new entity that Disney owns 70 percent of, with Fubo taking up the remaining 30 percent.

Former competitors Hulu + Live TV and Fubo will still be offered to consumers separately, but will now be traded together publicly under the Fubo name. Disney will control 70% of the venture, but it will be run by Fubo CEO and co-founder David Gandler.

Disney will merge its Hulu + Live TV virtual MVPD with competitor Fubo, expanding its sports-focused distribution while settling a suit over skinny bundle Venu.