Why fuboTV stock went up today

Actions of fuboTV (FUBO 17.65%) rose today in response to Friday night’s news that a judge temporarily blocked a sports streaming service joint venture, Venu, from Walt Disney, Foxand The discovery of Warner Bros.

The new service was expected to challenge and potentially replace fuboTV, which has struggled to gain traction since economies reopened after the COVID-19 pandemic lockdown.

As of 11:43 a.m. ET, the stock was up 29.7%.

Image source: Getty Images.

What does the decision say?

Judge Margaret Garrett issued an injunction against the new streaming service, which comes after fuboTV filed an antitrust lawsuit against the joint venture.

Garrett noted that Disney, Fox and Warner Bros. Discovery controls 54% of US sports rights and at least 60% of US national sports broadcasting rights, suggesting an even larger share is likely. The attorney for Warner Bros. Discovery said during the hearing that an injunction would be terminal for Venu.

The news is clearly a win for fuboTV, but it’s unclear whether it will permanently block the new service.

What’s next for fuboTV?

Competition from sports media giants could be terminal for fuboTV, so it is crucial for investors that the decision is not reversed. Even without any other comprehensive direct sports streaming competition, the company has struggled.

It delivers solid earnings growth, with revenue up 25% to $391 million, but the company is still losing money with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $11 million and a net loss of $25.8 million in the second quarter.

While the company is making progress, it could be upended by a new competitor like Venu or the expected launch of ESPN’s flagship streaming service next year.

Keep an eye on the developments surrounding Venu as it is likely to have an impact on fuboTV stock.