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.

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 .

Disney and Fubo have reached an agreement to merge Hulu + Live TV with FuboTV, the companies announced via a press release. This will create a new entity that Disney owns 70 percent of, with Fubo taking up the remaining 30 percent.