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 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 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.

Shares of FuboTV Inc. skyrocketed Monday after the company announced a deal to combine Walt Disney Co.’s Hulu + Live TV service with Fubo.

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.

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),

As part of the transaction, Disney will fold its Hulu + Live TV business into Fubo, creating a new venture that will be 70% owned by Disney and the rest by Fubo, Disney said in a statement on Monday,

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.