The sports streaming service from Disney, Fox and Warner Bros. Discovery was blocked by the judge, citing antitrust concerns

A judge has temporarily blocked the launch of Venu Sports, the upcoming sports streaming service from Disney’s ESPN ( DIS ), Warner Bros. Discovery (WBD) and Fox (FOXA), for antitrust reasons just weeks before the start of the NFL season.

The preliminary injunction comes after sports streamer FuboTV ( FUBO ) filed a lawsuit in February against the media giants behind the JV to block the service, citing “extreme suppression of competition in the US sports-focused streaming market.”

Shares in Fubo, which has more than 200 channels and 1.5 million North American subscribers, rose as much as 22 percent after Friday’s news. Shares of Disney, Fox and WBD were little changed on the announcement.

U.S. District Judge Margaret Garnett ruled in her ruling Friday that the launch of the joint venture would “substantially lessen competition and restrain trade.” Moreover, it would also ensure “a rapid exodus of a large number of Fubo’s subscribers” and that “Fubo’s bankruptcy and liquidation of the company’s shares will likely follow soon. These are quintessential damages that money cannot adequately repair.”

David Gandler, Fubo co-founder and CEO, called the ruling a victory “not only for Fubo, but for consumers. This decision will help ensure that consumers have access to a more competitive market with more sports streaming options.”

Disney, WBD and Fox responded to the order in a joint statement, saying, “We disagree with the court’s decision and are appealing.”

“We find that Fubo’s arguments are flawed of fact and law, and that Fubo has failed to demonstrate that it is legally entitled to a preliminary injunction. viewers who are not currently served by existing subscription options.”

Disney, WBD and Fox first announced the joint venture in February and teased a debut this fall. The service would bring together their respective rosters of sports rights and come as the media companies face pressure from investors to expand their streaming services and achieve profitability.

In March, Fox CEO Lachlan Murdoch dismissed Fubo’s lawsuit, saying the company had no regulatory concerns about the service.

“When you look at the service, it’s pro-consumer, it’s pro-competition,” he said at the time. “It’s focused on a cohort of people in a segment (that’s) underserved with sports content.”

The story continues

Earlier this month, the companies announced a price of $42.99 per month for Venu. Executives also reiterated expectations that the service will reach around 5 million by 2029, and that the opportunity lies in capturing “cord cutters” and “never nevers”.

Alexandra Canal is a senior reporter at Yahoo Finance. Follow X @allie_canal, LinkedIn, and email them at [email protected].

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