The deal will create a streaming multichannel video service that is second only to YouTube in scale, while potentially allowing the Venu service to move forward.

Today, Walt Disney Co. announced that it would be merging its Hulu + Live TV service with Fubo, another of the best cable alternatives out there. While billed as a merger, it seems that Disney has decided to acquire one of its competitors, as the new company formed by this merger will be 70% owned by the House of Mouse.

These benefits are all hypothetical for now, but any attempt by Fubo and Disney to take on YouTube TV has to mean good things for subscribers: the two streaming services will naturally need to get more competitive to win over YouTube TV subscribers, be it by bolstering the channel list, reducing the price or improving the user experience.

With a subscriber count that rivals YouTube TV, Disney has entered into an agreement that will see Hulu + Live TV and Fubo merging.

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 said on Monday it would merge its Hulu + Live TV business with rival FuboTV — a deal that potentially clears the way for the launch of its stalled sports streaming venture

Hulu+ Live TV and Fubo will merge their internet TV businesses, Disney announced Monday. Disney, which owns Hulu, will be the majority owner of the new Fubo.

Will the Hulu + Live and FuboTV deal mean more options for watching NFL, MLB and NBA games or will it mean higher prices? We explain.

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.

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.

Under the transaction, Disney will fold Hulu + Live TV business into Fubo ... With a combined 6.2 million subscribers in North America, the new venture will trail only YouTube TV.

The merger stems from a lawsuit that Fubo filed last year against Disney, Warner Bros. Discovery, and Fox, which had planned to launch their own skinny package of sports and broadcast channels. That service, called Venu Sports, would have cost $43 per month and was supposed to arrive last fall.