The Department of Justice is investigating Disney’s deal to take over a controlling interest in FuboTV, multiple outlets including Reuters reported Wednesday.
The DOJ is exploring whether such an acquisition would be a competition concern for streaming networks, with Disney potentially holding too much control over sports streaming.
The deal, which included a $220 million payment from Disney to Fubo as well as a $145 million loan scheduled for next year, came on the heels of a legal challenge from Fubo over another Disney streaming deal and resolved that litigation.
Fubo responded to Reuters, saying it was focused on the regulatory process of the deal. Neither the Justice Department nor Disney responded to Reuters’ request for comment.
Disney had announced in January an intention to merge its Hulu + Live TV umbrella with Fubo to create a larger entity, meant to clear the way for Disney’s sports streaming venture “Venu Sports” alongside Warner Bros. Discovery and Fox Corp.
That effort was eventually discontinued.
“This proposed acquisition raises significant concerns under antitrust law, would give Disney increased market power and incentives to increase costs for viewers and should be regarded as another data point in Disney’s history of anticompetitive behavior,” U.S. Senator Elizabeth Warren wrote in February.
–Field Level Media
