Elizabeth Warren has called for an investigation by the Department of Justice into Disney’s unexpected acquisition of the streaming service Fubo, contending that the move could potentially violate antitrust laws due to its significant implications.
As a gamer, I penned a missive on the 19th of February addressed to the acting assistant attorney general Omeed Assefi at the Department of Justice. In this letter, I requested an investigation into the potential merger between Disney’s Hulu + Live TV service and their rival Fubo. If this deal goes through, a joint holding company would be formed, with Disney owning 70% and Fubo’s CEO, David Gandler, still at the helm.
The termination of the merger resolved Fubo’s legal dispute with Disney, Fox Corporation, and Warner Bros. Discovery regarding their abandoned proposal for a competitor service called Venu, which would have been a streaming platform for major league sports. The rights to these sports were intended to be assembled from deals with the three entertainment giants. In a $1 billion lawsuit, Fubo had claimed that Disney, Fox, and Warner Bros. aimed to establish an “iron grip on sports content in order to extort billions of dollars in excess profits.
Warren’s letter suggests that Disney considered purchasing Fubo TV due to obstacles faced in establishing their own joint venture sports service Venu, which they couldn’t create because of legal hurdles. It’s worth noting that as late as early January, Disney and Fubo were involved in lawsuits with each other; Fubo had described Disney as a formidable opponent, the ultimate challenge to be conquered after overcoming all other media companies. If Disney were to acquire Fubo, their power would become even more substantial.
Originally announced by Bob Iger (Disney), Lachlan Murdoch (Fox) and David Zaslav (Warner Bros. Discovery) in February of last year, the sports streaming partnership known as Venu was initially intended to provide consumers with a comprehensive package featuring rights to various sports events such as NFL, NBA, WNBA, MLB, NHL, NASCAR, UFC, PGA TOUR Golf, Grand Slam Tennis, FIFA World Cup and more. However, this partnership has since been abandoned.
Fubo filed a lawsuit shortly after announcing it, and a federal judge granted them a preliminary injunction last August to temporarily halt the venture. When Disney revealed its plan in January of this year to acquire Fubo, it also stated that Disney, Fox, and Warner Bros. Discovery would pay Fubo $220 million as part of the deal.
According to Iger’s account, Disney found that after they began working on Venus’ launch, the rise of slim TV packages (or “skinny bundles”) became apparent. In his view, Venus seemed redundant in this context. The Fubo takeover, he explained to analysts during a Feb. 5 earnings call, offered an excellent chance for us to distribute ESPN across various skinny bundles and combine Hulu Live and Fubo’s channel operations into one. Essentially, while we valued being part of this business, it was not a key focus area for Hulu.
Four days following the Disney-Fubo deal, Venu, initially priced at $42.99 monthly, was formally canceled.
Should the Hulu + Live and Fubo merger be completed, it would form a company boasting approximately 6.2 million subscribers. Notable competitors in the pay-TV sector include Charter with around 13 million subscribers, Comcast housing about 12.8 million, DirecTV/AT&T counting roughly 9.7 million, and YouTube TV at nearly 9 million, according to MoffattNathanson’s research estimates.
As a devoted fan, I see this deal as Disney’s strategic move to dominate the streaming sports market. In essence, it appears they are attempting to monopolize this sector. This potential acquisition poses substantial antitrust issues, as it could grant Disney greater market power and potentially lead to higher costs for viewers. This move, I believe, should be viewed as yet another instance of Disney’s questionable competitive practices. Therefore, I implore the Department of Justice not to fall for Disney’s tactic of buying its way around antitrust regulations, but rather, to thoroughly examine this proposed acquisition closely.
Read More
- Path of Exile 2: How To Find & Unlock the Realmgate
- Joel McHale Joined Scream 7 And His Role Destroys A Popular Fan Theory
- Million-Dollar Crypto Scandal: Abra Pays Up in SEC Settlement
- NewsNation Taps Leland Vittert to Replace Dan Abrams
- We’re Terrible At Organizing Things.’ Tom Holland Reveals The Sweet Holiday Scheme He And Zendaya Are Going To Try Next Year
- Cookie Run Kingdom: Shadow Milk Cookie Toppings and Beascuits guide
- XLARGE Celebrates Lil Wayne With New Collection
- Ilana Glazer, Clark Gregg Join Broadway Cast of George Clooney’s ‘Good Night and Good Luck’
- Chanel Showcases Apichatpong Weerasethakul’s Immersive Exploration of Memory and Light
- Girls Frontline 2 Exilium tier list
2025-02-21 16:54