Disney has officially finished acquiring a majority stake in Fubo, creating a pay-TV behemoth that will become the no. 6 operator in the U.S. when combined with Hulu + Live TV, according to Deadline.

The two services will remain separate, but together they will boast nearly six million subscribers in the North American market, reports Deadline. The acquisition puts Disney toe-to-toe with internet-based pay-TV leader YouTube TV, which previously reported over eight million subscribers in early 2024. More recent estimates put YouTube TV’s subscriber base at 10 million including the service’s lucrative NFL sunday ticket package bundles.

Per Deadline, Disney and YouTube TV are currently at an impasse over distribution rights, which risks a blackout of ABC, ESPN, and other programs in the middle of the football season.

The acquisition comes after a legal dispute initiated by Fubo, in which the streamer accused Disney, Fox Corp., and Warner Bros. Discovery of monopolistic practices after the three entertainment giants attempted to launch the sports-centered Venu Sports joint venture, according to Deadline. After a judge ruled in Fubo’s favor, the smaller streamer agreed it would sell itself to Disney. Venu Sports eventually shuttered after more legal threats.

According to Deadline, Disney now controls 70% of the company with Fubo shareholders controlling the remainder. Fubo co-founder and CEO David Gandler, along with the rest of the company’s management team, will lead the combined Fubo and Hulu + Live TV businesses.

In a joint announcement, Disney and Fubo said that the new organization will cut costs significantly through operational synergies, as programming packages will be more flexible and marketing operations will become more efficient, per Deadline. As part of the acquisition, Disney will provide a $145 million term loan to Fubo.

After Venu’s demise, other streamers have brought more focused packages to the pay-TV space which were once considered unrealistic under the industry’s traditional business model. According to Deadline, Fox Corp. has incorporated Venu’s technology into its upstart Fox One service.

“Together with Disney, we’re creating a more flexible streaming ecosystem that gives consumers greater choice, while driving profitability and sustainable growth,” Gandler said in a statement, adding that the company is “proud to reward our retail shareholders who have supported Fubo’s mission from the very beginning. We believe this combination delivers the scale, stability and strategic clarity to create lasting value for consumers and shareholders, and indelibly impact the future of live streaming.”