Fubo climbs as Disney merges the platform with Hulu Live TV

Shares of streamer FuboTV are surging on Wednesday, after Disney announced it completed its majority stake acquisition of the company.

Fubo will be merged with Hulu Live TV, creating a juggernaut virtual pay-TV company rivaling YouTube. With about 6 million subscribers, the program will also become the sixth-largest pay-TV operator in the US. According to the companies, Fubo and Hulu Live will also continue to be available as separate services, “each offering consumers multiple plan options from skinny to robust at compelling price points.”

Disney now owns 70% of the joint venture. As part of the deal, which was first announced in January, Fubo dropped its lawsuit against Disney, which sought to block its planned joint sports streaming venture, Venu Sports. Venu was dissolved within a week after the deal. Fubo shares closed up more than 250% on the day the deal was first announced.

As part of the transaction, Fubo will have access to a $145 million term loan from Disney next year.