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.

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.

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,

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.

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 FuboTV on Monday announced a planned merging of Hulu Live + TV and Fubo. Disney will have a 70% ownership stake in Fubo when the deal closes.

Walt Disney Co said on Monday it would merge its Hulu + Live TV business with smaller rival FuboTV , removing a significant hurdle to the launch of its sports streaming venture with Fox Corp and Warner Bros Discovery .

The deal would combine Hulu + Live with Fubo and end litigation against the Venu Sports joint streaming service.

Disney announced a deal with pay-TV provider Fubo to combine Hulu + Live TV with Fubo's operations in a joint venture, ending Fubo's Venu lawsuit.

Disney announced Monday a merger of its streaming services in a surprise deal that would put it as second to YouTube TV's some 8 million subscribers, according to multiple reports.