FuboTV’s shares saw a significant rise, climbing as much as 22% on Friday after a U.S. District Court ruling blocked a joint venture between Disney, Fox, and Warner Bros. Discovery (WBD). The streaming service, which offers over 200 channels and boasts 1.5 million subscribers across North America, benefited from Judge Margaret Garnett’s decision, which determined that the proposed venture would “substantially lessen competition and restrain trade.”
The court ruling highlighted concerns that the joint venture could lead to a “swift exodus of large numbers of Fubo’s subscribers,” potentially resulting in the company’s bankruptcy and the delisting of its stock. Judge Garnett emphasized that these potential harms could not be adequately repaired through monetary compensation.
Fubo wins injunction to delay Disney-Fox-Warner’s live sports streamer Venu https://t.co/KuasPn5scH pic.twitter.com/nZ6TNvyzwe
— Scott Reddler (@ScottReddler) August 17, 2024
David Gandler, co-founder and CEO of Fubo, welcomed the decision, stating that it was a victory for both the company and consumers. “This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options,” Gandler said.
In response to the injunction, Disney, Fox, and WBD issued a joint statement expressing their disagreement with the court’s decision and announced plans to appeal. “We respectfully disagree with the court’s ruling and are appealing it,” the companies said. They argued that Fubo’s claims were unfounded and that the joint venture, known as Venu Sports, aimed to enhance consumer choice by targeting a segment of viewers currently underserved by existing subscription options.
The joint venture, first announced in February, was slated to bring together the sports rights from Disney, Fox, and WBD. The service was expected to launch this fall, with a monthly subscription price of $42.99. Despite the legal setback, the companies had high hopes for the service, projecting it would attract around 5 million subscribers by 2029, particularly among “cord cutters” and “cord nevers” looking for sports content.
📣 JUST IN: Judge Blocks Fox-Disney Sports Service Launch, FuboTV Wins Legal Battle $FUBO $WBD $PARA $DIS $AMZN $GOOGL $NFLX
👉 Key Highlights:
📍 US Judge blocks Fox, Disney, and Warner Bros. from launching Venu Sports streaming service.
📍 Venu Sports was set to launch at… https://t.co/l6q5istxYp pic.twitter.com/oMKppv0SrH
— Hardik Shah (@AIStockSavvy) August 16, 2024
Fox CEO Lachlan Murdoch had previously downplayed Fubo’s lawsuit, asserting that the service was both pro-consumer and pro-competition. However, the court’s ruling has now cast doubt on the future of the venture, at least for the time being.
Following the court’s decision, Fubo’s stock closed at $1.53, up 16.79% for the day, and continued to rise in after-hours trading. As the legal battle continues, Fubo appears to have gained a temporary advantage in the fiercely competitive streaming market.
Key Points:
i. FuboTV’s stock surged by 22% following a favorable court ruling that blocked a joint venture between Disney, Fox, and Warner Bros. Discovery (WBD).
ii. US District Judge Margaret Garnett ruled that the joint venture would harm competition, leading to potential bankruptcy and delisting of Fubo.
iii. Fubo CEO David Gandler hailed the ruling as a win for consumers, ensuring a more competitive marketplace for sports streaming.
iv. Fox, and WBD expressed disagreement with the ruling and announced plans to appeal, defending the joint venture as a pro-competitive option.
v. The blocked joint venture was initially announced in February, with plans to launch a sports streaming service priced at $42.99 per month by this fall.
James Kravitz – Reprinted with permission of Whatfinger News
