FuboTV Inc. ( FUBO ) shares skyrocketed on Monday after the company, along with The Walt Disney Company ( DIS ) , finalized a definitive agreement to combine Disney’s Hulu + Live TV with Fubo, forming a combined virtual MVPD company.

The combined entity will be majority-owned by Disney ( DIS ), which will hold 70% of the venture, with Fubo continuing to operate under the leadership of CEO David Gandler.

Following the closing of the Transaction, Fubo will be governed by a board, with the majority appointed by Disney ( DIS ). The combined company is projected to be cash-flow positive immediately after the closing.

The strategic partnership aims to offer consumers more choices in live TV streaming services. Fubo and Hulu + Live TV together will provide more than 6.2 million subscribers in North America access to an expansive set of live TV channels, including sports and entertainment programming.

Both Hulu + Live TV and Fubo will continue to be available as separate offerings. Hulu + Live TV will continue to be streamed in the Hulu app and be offered as part of the bundle with Hulu, Disney+ and ESPN+.

Fubo, which streams more than 55,000 live sporting events annually, will continue to serve its subscribers in the Fubo app.

The deal is still pending regulatory approval, Fubo shareholder consent, and other customary closing conditions.

In connection with the transaction, Disney ( DIS ) will enter into a new carriage agreement that will allow Fubo to create a new Sports & Broadcast service, featuring Disney’s sports and broadcast networks, including ABC, ESPN ( DIS ), ESPN2 ( DIS ), ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.

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Litigation Settlement: In conjunction with the deal, Fubo has settled all litigation with Disney ( DIS ) and ESPN ( DIS ) related to Venu Sports, the previously announced sports streaming platform planned by ESPN ( DIS ), FOX and Warner Bros. Discovery ( WBD ).

Last year, the trio had agreed to form a new joint venture to build an new platform for streaming sports, named Venu, made available directly to consumers through a new app.

Fubo filed a lawsuit in February, alleging that the larger media companies are using their control over major sports rights to unfairly dominate their competitors.

As part of the settlement, Fubo will receive a $220 million cash payment from Disney ( DIS ), FOX, and Warner Bros. Discovery ( WBD ), alongside a $145 million loan commitment from Disney ( DIS ) for 2026. The agreement includes a termination fee of $130 million under certain conditions.

Third-quarter sales of the sports-first live TV streaming platform grew 20.1% year over year to $386.21 million, beating the analyst consensus estimate of $376.77 million.

Price Action: FUBO shares are trading higher by 118% at $3.14 at last check Monday.

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