Disney, Fox, WBD Pull Plug On Venue

Disney’s ESPN, Fox Co and Warner Bros. Discovery aren’t moving forward with their joint streaming venture Venu Sports, the companies said Friday, calling off what would have been a major bet as the industry’s dynamics shift rapidly.

On Monday, Disney agreed to merge its Hulu + Live TV service with sports-focused FuboTV and take a controlling interest in the combined company.

Even after that deal was announced, multiple Venu partners still believed their plan could move forward, according to The Wall Street Journal citing people familiar with the talks. That confidence eroded as the week went on, these people said.

While the Fubo agreement put an end to Fubo’s litigation opposing the formation of Venu, it didn’t quell all legal gripes over Venu. On Thursday, DirecTV penned a letter to the judge in the legal dispute between Fubo and the three companies behind Venu, flagging concerns about Venu on antitrust grounds.

“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,” Disney, Fox and Warner said in a joint statement about the end of Venu. 

In 2024, the three companies announced plans to pool some of their most valuable sports programming into a joint streaming service that would serve sports fans who want access to live sports content. 

Shortly after, Fubo sued to block the launch of Venu, alleging the companies wouldn’t let Fubo carry a small bundle of sports-focused channels that they were looking to include in the new service. 

In August, a judge granted a preliminary injunction to block Venu’s launch while the litigation continued, saying the service would “substantially lessen competition and restrain trade.” Venu’s three partners appealed the decision. 

Disney, Fox and Warner are making an aggregate cash payment of $220 million to Fubo to resolve the legal dispute.

Live sports are highly valuable programming for media companies adapting to the streaming landscape. Of the 100 most-watched broadcasts in 2023, sports accounted for a whopping 96, according to Nielsen. Venu would have offered a large portfolio of live-sports options including National Football League, Major League Baseball, the National Hockey League and collegiate athletics.