The long-running legal battle between Fubo and Disney over the formation of Venu Sports is over—and in perhaps the most dramatic way possible—as the ESPN parent company is acquiring a majority stake in the rival streamer to create a potentially market-shaking joint venture.

Disney will merge its own Hulu + Live TV service with Fubo’s operations to form a new entity with more than 6.2 million North American subscribers. The new venture will be held by 70% of Disney shareholders, with Fubo owning the rest and running operations. The deal also includes a $220 million payment to Fubo from the Venu Sports partners—Disney, Fox, and Warner Bros. Discovery—as well as a $145 million loan from Disney to Fubo scheduled for January 2026.