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.

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.

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.

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),

The pay TV distributors raised a red flag to a U.S. district judge over a bid to dismiss an earlier injunction against the sports streamer after a surprise merger of Disney’s Hulu + Live TV and Fubo.

DirecTV and Dish Network have signaled their willingness to continue challenging the launch of Venu Sports following Disney's decision to buy out Fubo. This article, DirecTV, Dish present unified front against Fubo-Disney pay TV deal,