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Key Takeaways
- FuboTV shares took off following a judge’s ruling blocking launch of a new sports streaming service from Walt Disney, Fox, and Warner Bros. Discovery.
- The judge said FuboTV likely would win it argument that the partnership violated antitrust laws.
- The three companies disagree and plan to appeal.
Shares of FuboTV (FUBO) surged further Monday after a judge ruled in favor of the company in its antitrust challenge to a planned joint sports streaming service by The Walt Disney Co. (DIS), Fox Corp. (FOX.A), and Warner Bros. Discovery (WBD) called Venu Sports.
Judge Margaret Garnett of the Southern District of New York issued a temporary injunction on Friday stopping the launch of Venu Sports, arguing that Fubo was likely to be successful in its claim that the partnership would “substantially lessen competition and restrain trade.” Garnett said the freeze would be in effect “pending final adjudication of the merits of this case or further order of the Court.”
CEO Says ‘Victory Not Only for Fubo But Also for Consumers’
Fubo co-founder and Chief Executive Officer (CEO) David Gandler called the decision “a victory not only for Fubo but also for consumers,” whom he said will now “have access to a more competitive marketplace with multiple sports streaming options.”
In a joint statement, Disney, Fox and Warner Bros. Discovery argued Fubo was wrong in the facts and the law, and said they plan to appeal.
The three companies announced the joint venture in February, and hoped to have the service available in the fall for the NFL and college football seasons. Earlier this month, Venu explained that it would charge $42.99 per month.
FuboTV shares, which jumped 16.7% Friday on the judge’s ruling, were up a further 28% to $1.96 as of noon ET Monday. Still, they remain almost 40% lower for 2024.