The deal will create a streaming multichannel video service that is second only to YouTube in scale, while potentially allowing the Venu service to move forward.

After Disney axed sports-streaming service Venu, a Fubo subscriber filed a lawsuit alleging that the media giant has "a chokehold" on the market.

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 lawsuit claims that Disney's ownership of ESPN "enables it to extract monopoly rents" and the company imposes anticompetitive terms on rivals.

Fubo has settled with Disney but at least one of its subscribers has not and is pursuing a separate complaint against the media giant. Cole Unger is seeking class action status for a suit in U.S. District Court in the Southern District of New York against Disney for a "multifaceted campaign to suppress competition in