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A federal judge on Friday put on pause a plan by Walt Disney, Fox and Warner Bros Discovery to launch a new sports streaming platform, saying that FuboTV is likely to be successful in proving its claim that the partnership would be anti-competitive.
US District Judge Margaret Garnett in New York said in the ruling that a temporary injunction blocking the new streaming venture was appropriate.
Fubo said in its Feb. 20 lawsuit that the proposed venture would “destroy competition and inflate prices for consumers.”
Earlier in February, Fox, Disney’s ESPN and Warner Bros Discovery had disclosed plans to launch a sports streaming service, later dubbed Venu Sports, to capture younger viewers.
The three companies said in a statement they believed Fubo’s arguments were wrong and that they would appeal the court’s ruling.
“Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options,” they said.
Representatives for the other parties did not immediately respond to requests for comment on Friday.
Earlier this month, Venu Sports said it planned to launch in the United States this fall, with a broad portfolio of sports offerings, including 14 live sports channels and a library of content. It has said it hoped to attract 5 million subscribers within five years of its debut.
