Disney, Fox, and Warner Bros cancel sports streaming venture amid legal issues

Disney, Fox, and Warner Bros Discovery have cancelled Venu Sports, their joint sports streaming venture, following legal challenges and accusations of anti-competitive behaviour.

Walt Disney, Fox, and Warner Bros Discovery have cancelled plans to launch Venu Sports, a joint streaming venture aimed at consolidating their extensive sports rights, including the NFL, NBA, and FIFA World Cup. The companies announced their decision on Friday, citing “careful consideration” amid significant legal opposition.

The project, which aimed for 5 million subscribers in its first year, faced challenges from FuboTV, a rival streaming service, which accused the trio of anti-competitive practices. Backed by the U.S. Justice Department and 16 states, FuboTV secured a court order in August that temporarily blocked the venture.

The decision comes days after FuboTV requested to dismiss its lawsuit, signalling a potential resolution. The cancellation affected stock performance, with Warner Bros Discovery and Fox shares falling over 1%, while FuboTV’s surged 7% in premarket trading.

The move highlights the complexities of launching new platforms in a competitive streaming market.