Story Stocks^®

Sports streaming platform fuboTV (FUBO +19%) soars after winning a preliminary injunction against a joint venture between Walt Disney (DIS), Fox Corp (FOXA), and Warner Bros Discovery (WBD). These cable and streaming titans planned to launch Venu Sports, a live streaming platform, this fall. The court ruling, which was officially announced after the close on Friday, comes as a major win for FUBO.

• The Venu Sports announcement, which at the time in early February had no name, was a devastating hit to FUBO, which revolves around live sports. Venu Sports was also scheduled to launch in the fall, coinciding with the critically important NFL and college football seasons, as well as the MLB playoffs and many other major sporting events.
• The issue FUBO faced with Venu Sports was that the streaming giants behind the platform would include some sports-focused channels that were also on FUBO but now charge the company more to carry them. Furthermore, at a planned price of $42.99/month, Venu Sports significantly undercut FUBO's prices, which start at $79.99/month.
• With its market position threatened, FUBO announced in February that it was suing these corporations for antitrust practices. At the time, the lawsuit did not trigger any reversals in FUBO shares, likely because investors were not confident in a favorable outcome. However, now that FUBO has won a preliminary injunction against the Venu Sports joint venture, which is now blocked from launching, its stock is exploding.

Blocking the joint venture between DIS, FOX, and WBD is a significant victory for FUBO. However, nothing is set in stone. The three cable giants plan to appeal, which could then bring Venu Sports back on the scene, threatening FUBO's live sports streaming market share. Nevertheless, for the time being, FUBO's win comes at a critical time as the fall sports schedule heats up.