FuboTV Inc (FUBO) shares surged by 15.7% to $1.77 on Monday morning following a decisive legal victory. The company secured a preliminary injunction from the U.S. District Court, Southern District of New York, effectively halting the launch of a joint venture (JV) between Walt Disney Co (DIS), Fox Corp (FOXA FOXB), and Warner Bros Discovery Inc (WBD).
This ruling represents a significant win for Fubo, which has been actively challenging these media giants to maintain a competitive streaming landscape. The proposed JV, according to Fubo, would have granted these companies control over a substantial portion – 60%-80% – of live broadcast sports content. Fubo argued that this consolidation would stifle competition, limit consumer choices, and ultimately lead to higher prices for sports streaming services.
David Gandler, co-founder and CEO of Fubo, hailed the court’s decision as a victory for both the company and consumers. “Today’s ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options,” Gandler stated.
Fubo has been vocal about the potential negative impacts of the JV, asserting that it would create a monopolized market, hindering competition and leaving consumers with fewer, more expensive options. The company has framed its legal battle as a proactive effort to safeguard consumer interests by advocating for a diverse and affordable sports streaming market.
Beyond halting the JV, Fubo intends to proceed with its broader antitrust lawsuit against the JV partners and their affiliates. The company accuses them of engaging in long-term anti-competitive practices designed to undermine Fubo’s sports-centric streaming model. This lawsuit, initially filed on February 20, alleges that these vertically-integrated media companies have systematically obstructed Fubo’s business innovations, causing significant harm to both the company and its consumer base.
While the court has yet to announce a date for the next stage of legal proceedings, Fubo’s victory in securing the preliminary injunction sets the stage for a protracted battle over the future of sports streaming. The outcome of this legal showdown will have significant ramifications for the industry and its consumers.
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