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.

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

Disney's Hulu + Live TV and sports streaming service Fubo are combining in a deal that will also see the settlement of a lawsuit against the creation of Venu Sports. Fubo and Hulu + Live TV both allow customers to stream live broadcast and cable networks on their connected TVs,

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.

Walt Disney Co said on Monday it would merge its Hulu + Live TV business with smaller rival FuboTV , removing a significant hurdle to the launch of its sports streaming venture with Fox Corp and Warner Bros Discovery .

Fubo had successfully delayed the launch of a new sports streaming service owned by Disney, Warner Bros. Discovery, and Fox.

Disney will own a 70% stake in the resulting company, and Fubo will retain a 30% share. Fubo's management will run the new company, while Disney will appoint the majority of the board of directors. Both brands will continue to operate as they are today.

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.

Disney and FuboTV just kicked off the 2025 media biz M&A sweepstakes with the merger of Fubo TV and Hulu + Live TV. What does the deal mean?