Disney and Fubu reached a merger agreement under which Disney will combine its Hulu + Live TV business with Fubo to create a new virtual multichannel video programming distributor.

Walt Disney Co (NYSE: DIS) and FuboTV (NYSE: FUBO) just shook up the streaming sector. The two companies surprised investors by announcing the combination of Fubo and Hulu + Live TV into a company that will be known as Fubo,

The agreement ends litigation between the two companies over plans for a sports streaming service, but consumer advocates are pushing back.

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 is joining its Hulu+ Live TV service with streaming provider Fubo, the companies announced Monday. The new venture, which will be operated under the publicly traded Fubo company name, will be 70% owned by Disney and the remainder by Fubo shareholders, according to a joint statement.

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.

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,