Archive — US — techcrunch
DOJ reportedly probes Disney-FuboTV deal over competition concerns
The U.S. Department of Justice is investigating Disney's acquisition of a controlling stake in FuboTV over potential anti-competitive practices in the sports streaming market. The deal, which merges Disney's Hulu + Live TV with Fubo, would make Disney the majority owner, prompting concerns about market power and competition.
Key points
- DOJ is probing Disney's acquisition of a controlling stake in FuboTV.
- FuboTV is recognized for extensive sports coverage; the deal may threaten competition.
- Disney aims to merge Hulu + Live TV with Fubo, positioning itself as the second-largest digital pay-TV provider.
- Disney would hold approximately 70% stake in FuboTV after the merger.
- The acquisition led to Fubo dropping a lawsuit against Disney, Fox, and WarnerBros. Discovery.
- The investigation follows Senator Elizabeth Warren's request due to competition concerns.
Why it matters
- The probe highlights ongoing scrutiny of large tech/media mergers, resembling past investigations of Amazon and Google.
- The merger reflects a growing trend of consolidation in the streaming industry as companies seek to compete with platforms like YouTube TV.
- Concerns over market power in digital media are becoming more pronounced as the streaming landscape evolves.
The DOJ's investigation into the Disney-FuboTV deal underscores significant concerns about market concentration and competition in the rapidly changing streaming industry, reflecting broader trends towards regulatory scrutiny of large media consolidations.