Disney, Fubo reach merger agreement

Disney and Fubo have reached an agreement to merge, the companies announced Monday, signaling a victory for the entertainment giant in the world of sports streaming.

Fubo, a platform that offers a sports-first package of live TV streaming channels that it advertises as cheaper than traditional cable bundles, will combine with Disney's Hulu + Live TV business as part of the deal.

The deal, worth more than $200 million, ends months of litigation between Fubo and Disney.

News of the agreement was first reported by Bloomberg.

Fubo sued Disney, along with Fox Corp. and Warner Bros. Discovery, last year alleging anticompetitive practices over its planned joint direct to consumer streaming venture Venu.

As part of Monday's deal, Fubo "has settled all litigation with Disney and ESPN related to Venu Sports, the previously announced sports streaming platform planned by ESPN, FOX and Warner Bros. Discovery," Disney said.

Disney, like each of the major legacy media companies, has in recent months shifted more resources into streaming and away from linear television assets.