Five days after they unveiled a settlement with FuboTV over the proposed Venu sports streaming service, The Walt Disney Co., Fox and Warner Bros. Discovery announced today that the service will not launch after all.
The three studios announced the launch of Venu a year ago, prompting litigation from FuboTV, which said the combined sports streaming service is anti-competitive. It won a court injunction in August, which survived a December challenge.
On Monday (Jan. 6), Disney, Fox and Warner Bros. Discovery said they had patched up their differences with FuboTV, and would make an aggregate cash payment to Fubo of $220 million. In addition, Disney has committed to provide a $145 million term loan to Fubo in 2026 as part of the transaction.
In addition, Disney announced that it would merge its Hulu + Live TV vMVPD service with FuboTV, which would continue to be marketed as a separate service.
Monday’s announcement drew stern criticism from multiple corners of the industry, including DirecTV, which told the Justice Department that it might join EchoStar in challenging the deal in court.
What scuttled the deal is still up to speculation but the end came swiftly in an announcement this morning:
“Venu Sports, the proposed virtual MVPD service from ESPN, FOX and Warner Bros. Discovery, will be discontinued,” the companies said. “The collective decision by the three companies not to move forward with the contemplated joint venture is effective immediately.
“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” they added. “In an ever-changing marketplace, we determined that it was best to meet the evolving demands of sports fans by focusing on existing products and distribution channels. We are proud of the work that has been done on Venu to date and grateful to the Venu staff, whom we will support through this transition period.”
DirecTV issued this response:
“DirecTV remains a leader in sports, and we look forward to working with our programming partners —including Disney, Fox and Warner Bros. Discovery—to compete on a level playing field to deliver sports fans more choice, control, and value all-in-one experience. ”
Article updated to include DirecTV comment.
