A federal judge has halted the launch of the sports streaming service Venu Sports, a joint venture by media giants The Walt Disney Co., Fox Corp., and Warner Bros. Discovery, following an antitrust challenge by FuboTV.
Judge Margaret Garnett from the Southern District of New York issued a temporary injunction, asserting that FuboTV’s claim of potential competition constraints and trade restrictions was likely to succeed. The injunction will remain in place until a final verdict or further court order.
FuboTV’s CEO, David Gandler, hailed the decision as not just a victory for his company but also for consumers, emphasizing the importance of fostering a competitive sports streaming market with multiple options.
In response, Disney, Fox, and Warner Bros. Discovery have expressed their intention to appeal the ruling, disputing FuboTV’s assertions on legal and factual grounds.
The joint venture, introduced in February, aimed to launch Venu Sports in time for the upcoming NFL and college football seasons, with a subscription cost of $42.99 per month.
Following the court ruling, FuboTV’s shares have seen a significant surge, with a 28% increase to $1.96 by noon ET on Monday, building on a 16.7% jump the previous day. Despite these gains, FuboTV’s shares remain down by almost 40% for the year 2024.
The legal battle surrounding Venu Sports underscores the complexities of competition in the sports streaming industry and the regulatory oversight needed to ensure fair market practices for the benefit of consumers and industry players.
You Might Be Interested In
