A federal judge on Friday put on hold a plan by Walt Disney, Fox and Warner Bros Discovery to launch a new sports streaming platform, saying FuboTV would likely be successful in proving its claim that the partnership was anti-competitive.
US District Judge Margaret Garnett in New York said in her ruling that an injunction to block the new streaming company was appropriate.
Fubo said in its February 20 lawsuit that the proposed transaction would “destroy competition and drive up prices for consumers.”
Venu Sports – a partnership between Fox, Disney and Warner Bros Discovery
In early February, Fox, Disney’s ESPN and Warner Bros Discovery announced plans to launch a sports streaming service, later called Venu Sports, aimed at younger viewers.
In a statement, the three companies said they believed Fubo’s arguments were incorrect and would appeal the court’s ruling.
“Venu Sports is a pro-competitive option that aims to expand consumer choice by reaching a viewer segment not currently served by existing subscription options,” they said.
Representatives of the other parties did not immediately respond to requests for comment on Friday.
Earlier this month, Venu Sports announced it would launch in the U.S. this fall with a broad portfolio of sports offerings, including 14 live sports channels and a content library. The company hopes to attract five million subscribers within five years of its debut.
