Disney will own a 70% stake in the resulting company, and Fubo will retain a 30% share. Fubo's management will run the new company, while Disney will appoint the majority of the board of directors. Both brands will continue to operate as they are today.

The agreement ends litigation between the two companies over plans for a sports streaming service, but consumer advocates are pushing back.

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.