The pay TV distributors raised a red flag to a U.S. district judge over a bid to dismiss an earlier injunction against the sports streamer after a surprise merger of Disney’s Hulu + Live TV and Fubo.

There are many notable elements with this week’s news of Disney acquiring majority control of Fubo and combining it with Hulu + Live TV (at least operationally; both of those virtual multichannel video programming distributor services will remain offered separately for now).

Fubo will also handle deals with channels independently, giving them more flexibility to offer sports and entertainment options. The company will be traded publicly under the name

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.

Today, Walt Disney Co. announced that it would be merging its Hulu + Live TV service with Fubo, another of the best cable alternatives out there. While billed as a merger, it seems that Disney has decided to acquire one of its competitors, as the new company formed by this merger will be 70% owned by the House of Mouse.

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.

In a surprising deal announced on Monday, Disney is set to combine its Hulu Live TV business with Fubo, the live TV streaming service known for its extensive sports coverage. Under the terms of the deal, Disney will own about 70% of Fubo, which will continue to be available to viewers as a separate offering.

Walt Disney is joining its Hulu+ Live TV service with streaming provider Fubo, the companies announced Monday. The new venture, which will be operated under the publicly traded Fubo company name, will be 70% owned by Disney and the remainder by Fubo shareholders, according to a joint statement.

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,