The streaming service Venu Sports, which was supposed to combine the live offerings of The Walt Disney Co.'s (DIS) ESPN, FOX (FOX), and Warner Bros. Discovery (WBD), has been called off before it could launch.
"After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service," the companies said in a joint statement Friday. "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."
The announcement comes just days after Disney and FuboTV (FUBO) said they would resolve one of the legal challenges against Venu Sports by merging streaming competitor Fubo—which had sued to block the service's launch—with Disney's Hulu + Live TV offering. Disney will own 70% of Fubo, which settled all litigation against the entertainment giant, FOX, and Warner Bros. Discovery, and will receive $220 million in cash from them.
A judge previously had ruled that FuboTV would likely win its suit against Venu Sports and delayed the service's launch, agreeing that the new service would likely lessen competition in the industry. After the Disney-Fubo announcement, DirecTV and Dish parent EchoStar (SATS) filed letters with the judge requesting the preliminary injunction blocking the launch not be lifted.
Warner Bros. Discovery shares fell 5% Friday morning, while those of FOX and Disney were down about 2% and 1.5%, respectively. FuboTV was up 3.3%.
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