Disneyis taking aim atYouTube TVwith its latest move in the streaming space.

The Walt Disney Companyhas announcedit has agreed to merge Hulu + Live TV with Fubo. The deal is pending regulatory approval. Under the terms of the agreement between the two companies, Disney will own 70 percent of Fubo, with Fubo’s co-founder and CEO, David Gandler, managing the newly combined company.

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“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” Gandler said in apress release. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility.”

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Hulu + Live TV and Fubo will still be separate offerings

The newly combined company could be a strong rival to YouTube TV’s market dominance

Fubo will negotiate carriage deals with content providers on behalf of Hulu + Live TV and Fubo, independent of Disney. In conjunction with the merger deal, Disney will enter into a new carriage agreement with Fubo that will allow it to create a new Sports and Broadcast service featuring Disney’s sports and broadcast networks, such as ABC, ESPN, EPSN2, ESPNews and ESPN+.

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Could this pave the way for Venu Sports?

The end of Fubo’s lawsuit could pave the way for the mega-sports streamer

In light of this deal with Disney, Fubo hassettled all its litigationwith Disney, Fox and Warner Bros. Discovery related to Venu Sports. This means that the sports-focused streamer, which is a joint venture between Disney’s ESPN, Warner Bros. Discovery and Fox could finally proceed after a year in traction. When it was first announced in 2024, the pitch for Venu Sports was a compelling one, as this $43 per month streaming service would bring all three companies’ portfolio of live sports, including coverage from the NFL, NBA, NHL and MLB to a single streamer. It is unknown if the same pricing would be available should Venu finally move forward, but this is certainly a tantalizing development for sports fans, and could save those who had been relying on YouTube TV for sports coverage some serious money.

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Hulu streamer rendered on a TV in the background.

Pluto TV Cover

Venu Sports

CBS on a rendering of Roku on a TV.