Judge blocks Disney-Fox-Warner sports streamer for now; FUBO spikes

A judge has granted a preliminary injunction blocking the major joint sports streaming service planned for the fall from Disney (DIS), Fox (FOX) (FOXA) and Warner Bros. Discovery (WBD).

Stock in fuboTV (NYSE:FUBO) spiked as much as 24% off the news, a major win for the sports-centric streamer. The stock closed the session up 16.8%.

The three streaming giants have planned to launch Venu Sports in the fall, combining their linear television offerings that carry sports and offering something of a “one-stop shop” to fans who cut the pay-TV cord, but want comprehensive coverage of live sports.

FuboTV (FUBO) has been arguing that its future as a service is in the balance, and saying that Venu Sports is the culmination of years of anticompetitive action from the partner companies.

“It appears to the Court that Fubo is likely to succeed on its claims that by entering into the JV, the JV Defendants will substantially lessen competition and restrain trade in the relevant market in violation of Section 7 of the Clayton Act,” Judge Margaret Garnett ruled.

“It also appears that a balance of equities tips decidedly in favor of Plaintiffs and the public interest would be served by the entering of a preliminary injunction,” she continued.

Venu Sports is therefore enjoined and restrained from launching the service pending a final adjudication of the case.

“Today’s ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options,” Fubo co-founder and CEO David Gandler said in reaction.

“But our fight continues,” he said. “Fubo has said all along that we seek equal treatment from these media giants, and a level playing field in our industry. The proposed joint venture was only the latest example of anticompetitive practices that The Walt Disney Company, FOX Corp. and Warner Bros. Discovery have consistently engaged in for many years. We believe these practices monopolize the market, stifle competition and cheat consumers from deserved choice.”

The Venu partners indicated they would appeal the decision.

Disney (DIS), Fox (FOX) (FOXA) and Warner Bros. Discovery (WBD) in March named Pete Distad the CEO of the joint venture, and set its pricing at $42.99 per month.

Three Democratic lawmakers had sent a letter to the Justice Dept. last month asking for scrutiny of the deal for competitive reasons.