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Justice Department Clears Disney’s Controversial Acquisition of Fubo Amid Antitrust Concerns

By  |  October 29, 2025

Disney’s purchase of a controlling interest in sports streaming company Fubo has officially closed, following clearance from the U.S. Department of Justice (DOJ) after months of antitrust scrutiny. According to a statement obtained by Front Office Sports, the federal agency completed its investigation into the deal and permitted it to move forward late last week.

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    The acquisition, first announced in January, grants Disney roughly a 70% stake in Fubo, with plans to merge the service with Hulu + Live TV. Fubo shareholders will retain the remaining 30%. The transaction, valued at hundreds of millions of dollars, also includes a $220 million payment from Disney to Fubo and an additional $145 million loan scheduled for next year. Per a statement, the combined platform will become the sixth-largest pay-TV provider in the U.S., boasting nearly six million subscribers and access to more than 55,000 live sporting events.

    The DOJ opened its probe in April to assess whether Disney’s purchase could limit competition in the live sports streaming market, a concern that has loomed over the media giant’s growing influence in sports broadcasting. According to a statement from a source familiar with the matter, the agency ultimately found no grounds to block the transaction. The approval came just as the federal government entered the fourth week of a shutdown, which, as Puck reported Tuesday, may have accelerated the process by delaying regulatory deadlines.

    Read more: Justice Department Clarifies Patent-Antitrust Balance in Disney-InterDigital Case

    Fubo had previously been embroiled in a legal dispute with ESPN, Fox, and Warner Bros. Discovery over the planned launch of Venu Sports, a joint streaming venture that Fubo claimed violated U.S. antitrust law. The lawsuit successfully delayed Venu’s rollout last fall. That case effectively ended when Disney moved to purchase Fubo, resolving the pending claims in exchange for control of the company.

    However, the deal has not silenced critics. DirecTV and EchoStar filed objections in federal court, arguing that the acquisition and resulting dismissal of the lawsuit failed to “address the underlying competition issues.” The companies contended that Disney’s payment to Fubo amounted to a strategic settlement designed to “ensure cooperation from an aggrieved competitor” rather than promote fair market competition.

    The DOJ’s decision marks another milestone in Disney’s continued expansion into direct-to-consumer streaming, but the controversy underscores broader concerns over consolidation in the sports media landscape.

    Source: Front Office Sports