FuboTV Wins Bid to Block Disney-Fox-Warner Sports Streaming Platform Over Antitrust Concerns

The lawsuit alleged that the media giants aim to consolidate control over sports television in a single streaming platform. If allowed to proceed, Fubo said consumers will eventually be forced to pay higher prices.

By Winston Cho

• Disney CEO Bob Iger Michael M. Santiago/Getty Images

A federal judge has temporarily blocked a joint venture from media giants teaming up to pool together their sports licensing rights to form a new streaming service, which was challenged by rival sports streamer Fubo.

U.S. District Judge Margaret Garnett on Friday ruled against The Walt Disney Co., Fox Corp. and Warner Bros. Discovery in barring Venu to proceed with its planned release slated for later this year. She found that Fubo is likely to prevail on claims that the partnership will “substantially lessen competition and restrain trade.”

If the platform launches, the court concluded there will likely be a “swift exodus” of Fubo’s subscribers that will lead to the company’s bankruptcy. Venu will be the “only option on the market for those television consumers who want to spend their money on multiple live sports channels they love to watch, but not on superfluous entertainment channels they do not,” Garnett wrote.

In a statement, Disney, Fox and Warners said it will appeal the order. “We believe that Fubo’s arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction,” it added. “Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options.”