DirecTV Challenges Fubo-Disney Deal Over Antitrust Concerns

DirecTV has challenged the dismissal of FuboTV‘s lawsuit against Venu Sports, a streaming venture by Disney, Fox, and Warner Bros. Discovery, arguing that the settlement does not address antitrust concerns. The dispute highlights the intensifying competition in the pay TV market as traditional cable bundles decline.

FuboTV initially sued the three media giants in February 2024, alleging that Venu Sports would stifle competition and raise prices for consumers. A U.S. judge temporarily blocked the venture in August. However, FuboTV dropped its lawsuit this week after Disney agreed to merge its Hulu + Live TV business with FuboTV, creating the second-largest digital pay-TV provider in the U.S.

As part of the settlement, Disney, Fox, and Warner Bros. Discovery will pay Fubo $220 million in cash, with Disney also committing to a $145 million term loan in 2026. Additionally, Disney will license its sports and broadcast networks, including ABC and ESPN, to Fubo for a new sports-focused streaming service.

DirecTV, in a letter to U.S. Judge Margaret Garnett, criticized the settlement, stating it “restores an anticompetitive runway for the JV defendants to control the future of the live pay TV market.” EchoStar, another satellite TV provider, echoed these concerns in a separate letter.

The merger between Fubo and Disney’s Hulu + Live TV businesses marks a significant shift in the streaming landscape. While both services will remain separate, the companies plan to launch new sports-centric TV packages at lower prices, potentially disrupting the market further.

Fubo’s lawsuit against Venu Sports stemmed from fears that the venture would monopolize sports streaming. With the legal hurdles now cleared, Venu Sports could re-emerge, offering a package that includes Disney, Fox, and Warner Bros. Discovery’s sports and broadcast channels.

Meanwhile, DirecTV is preparing to launch its own sports-centric bundle, while competitors like YouTube TV and Dish may follow suit. The result could be a more fragmented but cost-effective streaming market for consumers.

Regulatory scrutiny remains a potential obstacle. The U.S. Department of Justice previously supported Fubo’s lawsuit, and consumer advocacy groups have raised concerns about the Fubo-Disney deal. The outcome of these challenges could shape the future of live TV streaming.