DirecTV challenges dismissal of Fubo's claims against Venu Sports (updated)

FuboTV

09/01/2025 20:37

(Adds comment requests in paragraph 7)
       Jan 9 (Reuters) - U.S. satellite TV provider DirecTV on
Thursday challenged a dismissal of FuboTV's  FUBO.N  lawsuit
against Venu Sports, the streaming service planned by Walt
Disney  DIS.N , Fox Corp  FOXA.O  and Warner Bros Discovery Inc
 WBD.O , saying it does not resolve antitrust issues around the
joint venture. 
    DirecTV's challenge marks the latest development in a battle
between media companies for dominance in the pay TV market.
    FuboTV sued the three media giants behind Venu in February,
claiming the sports streaming venture would reduce competition
and increase prices for consumers. The deal was temporarily
blocked by a U.S. judge in August. 
    On Monday FuboTV asked the U.S. District Court in Manhattan
to dismiss its lawsuit against Venu after Walt Disney said it
would merge its Hulu + Live TV business with FuboTV, creating
the second-biggest digital pay-TV provider.  
    Under the litigation settlement, the companies will pay Fubo
$220 million in cash, with Disney also committing to a $145
million term loan for Fubo in 2026.
    Disney will enter into a licensing agreement that would
allow Fubo to create a sports-focused service featuring Disney's
sports and broadcast networks including ABC and ESPN, as well as
ESPN+.
        Fubo and Warner Bros Discovery declined to comment while
Disney and Fox did not immediately respond to requests for
comment. 
  
    In a letter to U.S. Judge Margaret Garnett on Thursday,
DirecTV said the settlement "restores an anticompetitive runway
for the JV (joint venture) defendants to control the future of
the live pay TV market." 
    Satellite TV provider EchoStar  SATS.O  wrote a similar
letter on Tuesday.
    "By this settlement, defendants pay off and seek to subsume
the very competitor that raised these antitrust violations to
the Court," DirecTV said. 

 (Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Nia Williams and Mark Porter)
 ((mailto:HarshitaMary.Varghese@thomsonreuters.com;))