DOJ Reviews Disney-Fubo Deal Amid Antitrust Concerns

WASHINGTON, D.C. — The blockbuster deal between Disney and Fubo is under scrutiny by the U.S. Department of Justice (DOJ) for potential antitrust issues, sources revealed on Tuesday.

The agreement, struck earlier this year, allows Disney to acquire a controlling interest in Fubo, merging it with its Hulu + Live TV streaming service. This partnership includes a $220 million payment from Disney and a $145 million loan scheduled for next year.

As part of this acquisition, the combined entities could surpass 6.2 million North American subscribers, making it the second-largest streaming television provider on the continent, following YouTube TV. However, concerns about anti-competitive practices have surfaced, particularly from lawmakers like Senator Elizabeth Warren (D-Mass.).

Warren has voiced her suspicions about the deal, stating, “Disney’s proposed acquisition of Fubo appears to allow Disney to simultaneously circumvent the lawsuit while gobbling up a competitor,” raising significant concerns under antitrust law.

In January, the Walt Disney Company had hoped to put legal troubles behind it, following the closure of Venu Sports, a joint streaming service proposed by ESPN and others.

The situation has evolved, with multiple lawmakers urging the DOJ to closely examine Disney’s latest moves. Critics argue that further consolidation could lead to increased costs for consumers.

No official comments have been released by Disney or Fubo in response to the ongoing review. However, Fubo is scheduled to report its next quarterly earnings on May 2, while Disney plans to do so on May 7.

As the scrutiny continues, the outcome of the DOJ’s investigation remains uncertain, posing challenges for both companies in a competitive streaming landscape.