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.

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.

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.

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 .

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

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.

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.