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.

Disney announced Monday a merger of its streaming services in a surprise deal that would put it as second to YouTube TV's some 8 million subscribers, according to multiple reports.

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.