Disney-Fubo Deal Sparks Antitrust Concerns from DirecTV, Dish, and EchoStar

Disney has acquired majority control of Fubo, combining its operations with Hulu + Live TV, though both streaming services will continue to be offered separately for now. This significant move comes as part of a broader settlement involving a lawsuit Fubo had filed against joint venture Venu Sports. However, according to a statement, while this agreement resolves the legal dispute between the parties involved, it may not mark the end of the controversy surrounding Venu’s potential launch.

Per the settlement, Disney, Fox, and Warner Bros. Discovery (WBD) — the parent companies of ESPN, Fox Sports, and TNT Sports — have agreed to pay Fubo $220 million. This resolution has sparked speculation that Venu Sports could launch sooner than anticipated, with reports suggesting they may aim to go live before Super Bowl LIX, scheduled for February 9. Despite this, some industry insiders believe lingering concerns could result in further legal challenges from other players in the media landscape.

While it was Fubo that initially took legal action against Venu Sports, their cause garnered significant support from other multichannel video programming distributors (MVPDs). According to a statement, DirecTV, Dish, cable channel Newsmax, and several consumer advocacy groups backed Fubo’s efforts by signing a coalition letter sent to key members of the U.S. Senate and House of Representatives last May. This letter received considerable political attention, with several lawmakers responding to the coalition’s concerns.

Related: Disney Merges Hulu + Live TV with FuboTV in Major Streaming Deal

Although none of these other MVPDs joined Fubo’s lawsuit, many observers have speculated that another distributor could pursue legal action against Venu in the future. So far, no new lawsuits have been filed. However, the potential for further litigation remains, particularly after New York-based law firm Halper Sadeh LLC announced an investigation into whether Fubo’s management acted in shareholders’ best interests during the Disney deal.

Concerns about the implications of the settlement have also been voiced directly to the court. On Tuesday, EchoStar, the parent company of Dish, submitted a letter to Judge Margaret Garnett, who presided over the Fubo-Venu case. EchoStar outlined its reservations about the deal and its potential impact on competition within the industry. Just two days later, DirecTV followed with its own letter to Judge Garnett, reportedly echoing similar concerns, but with even stronger language.

The settlement’s impact on the media and streaming landscape is already drawing considerable attention, especially with the possibility of Venu Sports launching soon. While the deal has provided Fubo with significant financial compensation, the broader implications for other industry players and consumers remain to be seen. Industry watchers are now closely monitoring whether other MVPDs will take legal action, potentially setting the stage for more courtroom battles in the evolving world of live TV streaming services.

Source: Awful Announcing