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.

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’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.

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

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.

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 .

FuboTV and Disney to merge Hulu + Live TV, creating a new venture catering to 6.2M customers in North America.

FuboTV settled all pending litigation with Disney, FOX, and Warner Bros. Discovery, and will receive a $220 million cash payment from the companies.

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),