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.

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.

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.

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 and Hulu + Live TV both allow customers to stream live broadcast and cable networks on their connected TVs,

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.

Hulu and sports-forward streamer Fubo are settling aside some legal differences and teaming up in order to launch yet another new platform for you to subscribe to. Last year, Fubo filed a lawsuit against Disney (which co-owns Hulu),

Fubo is a virtual multichannel video programming distributor, which means it offers live TV channels over the internet as opposed to over cable, satellite or fiber. Hulu’s Live service, an alternative to cable TV, lets users stream from roughly 100 live TV channels including sports, news and shows.

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.