Walt Disney is joining its Hulu+ Live TV service with streaming provider Fubo, the companies announced Monday. The new venture, which will be operated under the publicly traded Fubo company name, will be 70% owned by Disney and the remainder by Fubo shareholders, according to a joint statement.

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.

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.

Last August, a judge blocked the launch of Venu Sports, saying it would limit competition. This sent Fubo shares soaring.

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.

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.

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

The launch of sports streamer Venu, "and potentially new packages from Fubo, appears to be an important strategic lever to cast a wider net and catch all potential subscribers," says one Disney analyst.

Disney has made a deal with streaming provider Fubo, merging Hulu + Live TV and Fubo’s operations into a new joint venture, while also settling Fubo’s antitrust lawsuit against Disney’s sports streaming package,

The deal comes after Fubo sued Disney over a new streaming venture. The post Disney has struck deal to merge Fubo TV with Hulu + Live TV appeared first on The Manual.