US media giant Disney’s recent acquisition of sports-focused streaming service Fubo is being investigated by the US Department of Justice (DoJ).
The deal between the media companies raised antitrust concerns at the time, and the DoJ has now formally launched an investigation, according to US news outlet Puck.
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Dish and DirecTV both directly cited antitrust issues in their complaints about the move.
The report stated that Disney and Fubo are already responding to information requests and bracing for a potential challenge from the Trump administration over the deal, which was announced in January.
Through the agreement, Disney and Fubo will merge their live internet TV services. Disney will combine its Hulu + Live TV business with Fubo and become majority owner of the resulting company.
Under the terms of the deal, Disney will own approximately 70% of Fubo, while Fubo shareholders will own the remaining 30%.
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By GlobalDataSignificantly, in conjunction with the transaction, Fubo settled all litigation with Disney and ESPN related to Venu Sports, the joint venture sports streaming platform planned by ESPN, Fox, and Warner Bros. Discovery (WBD). Fubo has also settled all litigation with Fox and WBD.
Fubo filed a lawsuit against Disney, Fox and WBD in February 2024, seeking the blocking of Venu Sports.
Just days after Disney announced its acquisition of Fubo, the planned launch of Venu Sports was scrapped.
The platform would have housed over 50% of all US sports rights on one service.
Those opposing the Disney-Fubo deal believe that the combination of Hulu + Live TV business with Fubo would result in a significant reduction in competition. Bringing Fubo under that umbrella would add to Disney’s already substantial marketplace power.
A key legislative critic of this move has been Senator Elizabeth Warren of Massachusetts, who sent a letter to the DoJ stating that the acquisition of Fubo “appears to allow Disney to simultaneously circumvent the lawsuit while gobbling up a competitor.”
She added: “This proposed acquisition raises significant concerns under antitrust law, would give Disney increased market power and incentives to increase costs for viewers, and should be regarded as another data point in Disney’s history of anticompetitive behavior.
“…Disney’s proposed acquisition of Fubo threatens to significantly decrease competition in the vMVPD [virtual multichannel video programming distributor] market in presumptive violation of antitrust law.”
The combination of Fubo and Hulu + Live TV, which together have over 6.2 million subscribers in North America, will allow customers to stream live broadcast and cable networks on their connected TVs, mobile phones, tablets, and other internet-connected devices.
Through the deal, Disney will enter into a new carriage agreement with Fubo that will allow it to create a new sports and broadcast service, featuring Disney’s premier sports and broadcast networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.
Hulu + Live TV will continue to be streamed in the Hulu app and be offered as part of the bundle with Hulu, Disney+, and ESPN+.
The combined company will negotiate carriage agreements with content providers for both Hulu + Live TV and Fubo services independently from Disney.
