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    FuboTV files lawsuit over ESPN, Fox, Hulu, Warner Bros. Discovery sports-streaming venture

    By SHOOTUpdated:No Comments813 Views
    This Sept. 16, 2013, file photo shows the ESPN logo prior to an NFL football game between the Cincinnati Bengals and the Pittsburgh Steelers, in Cincinnati. ESPN, Fox and Warner Bros. Discovery announced plans on Tuesday, Feb. 6, 2024 to launch a sports streaming platform in the fall that will include offerings from at least 15 networks and all four major professional sports leagues. (AP Photo/David Kohl, File)

    By Joe Reedy

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    Streaming service FuboTV has filed an antitrust lawsuit against ESPN, Fox, Warner Bros. Discovery and Hulu, which are planning to launch a sports-streaming venture in the fall.

    The lawsuit has been filed in the Southern District of New York. FuboTV, which focuses primarily on live sports, is seeking a jury trial.

    The Wall Street Journal was the first to report on the lawsuit.

    "Each of these companies has consistently engaged in anticompetitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice," David Gandler, Co-founder and CEO of FuboTV, said in a statement. "Simply put, this sports cartel blocked our playbook for many years and now they are effectively stealing it for themselves."

    ESPN, Fox, Warner Bros. Discovery and Hulu declined to comment about the lawsuit.

    FuboTV says in its filing that it has tried for years to offer a sports-only streaming service but has been prevented from doing so because of ESPN. Fox and Warner Bros. Discovery has imposed bundling requirements on FuboTV which it says forces "Fubo to spend hundreds of millions of dollars to license and broadcast content that its customers do not want or need."

    "Faced with the threat of disruptive competition from Fubo and other upstarts, Defendants have responded by locking arms (and locking others out) to steal Fubo's core business idea — a sports-centric package of channels — while blocking Fubo from offering that same package," the company said in its court filing.

    ESPN, Fox, Warner Bros. Discovery and Hulu announced their plans to offer a sports streaming service on Feb. 6. The three companies will each share one-third ownership in the joint venture. A name for the service and pricing will be announced at a later date.

    FuboTV not only wants the proposed joint venture shut down, but it is seeking cash damages. If the court does not rule to do either, FuboTV is seeking restrictions on the joint venture so that competition remains in the marketplace.

    FuboTV was founded in 2015. In its most recent quarterly filing last November, it reported 1.48 million paid subscribers in North America for the third quarter, an all-time high for the company.

    Joe Reedy is an AP sports writer

    Tags:ESPNFoxFuboTVHuluWarner Bros. Discovery



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

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