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 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.

Disney has made a deal with streaming provider Fubo, merging Hulu + Live TV and Fubo’s operations into a new joint venture, while also settling Fubo’s antitrust lawsuit against Disney’s sports streaming package,