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

SPORTS-CENTRIC MOVES

** J.P.Morgan views the deal "favourable" as it resolves Fubo's imminent balance sheet challenges, provides business with more scale and offers the ability to package into a skinnier sports tier

** The agreement is a positive step for FUBO and other distributors, enabling a leaner, sports-focused package that will begin to alleviate a key industry risk, adds JPM

** BTIG says deal has immediate, positive implications for FUBO from a balance sheet and enterprise value viewpoint and could position FUBO to offer a highly competitive news plus sports skinny bundle

** Macquarie says Fubo's deal does not "move the needle" much for DIS on the financial front, but it could help consolidate Disney's distribution business, opening opportunities in carriage negotiations and programmatic advertising

** Wedbush says combined entity will be slightly smaller than competitors Sling TV and YouTube TV, but is well-positioned to attract "cord nevers" over the next decade

(Reporting by Akriti Shah)

((akriti.shah@thomsonreuters.com))