Sports streaming platform fuboTV (FUBO +19%) surged after securing a preliminary injunction against a joint venture involving Walt Disney (DIS, Financial), Fox Corp (FOXA, Financial), and Warner Bros Discovery (WBD, Financial). These media giants intended to launch Venu Sports, a live streaming platform, this fall. The court ruling, announced after the close on Friday, marks a significant victory for FUBO.
- Venu Sports, initially unnamed in early February, posed a major threat to FUBO, which focuses on live sports. The platform was set to launch during the crucial NFL and college football seasons, as well as the MLB playoffs and other major sporting events.
- The main issue for FUBO was that the streaming giants would include sports-focused channels already on FUBO but charge more for them. Additionally, Venu Sports planned to offer a monthly subscription at $42.99, significantly undercutting FUBO's starting price of $79.99.
- Feeling its market position threatened, FUBO sued these corporations for antitrust practices in February. Initially, the lawsuit didn't boost FUBO shares, as investors were skeptical of a favorable outcome. However, with the preliminary injunction now secured, preventing Venu Sports from launching, FUBO's stock is soaring.
Blocking the joint venture between DIS, FOXA, and WBD is a crucial win for FUBO. However, the victory isn't final. The three media giants plan to appeal, which could potentially revive Venu Sports and threaten FUBO's market share in live sports streaming. For now, FUBO's win comes at a pivotal time as the fall sports schedule intensifies.
