DOJ to investigate Fubo and Hulu + Live TV merger
DOJ to investigate Fubo and Hulu + Live TV merger
The announcement comes months after Fubo’s lawsuit against Venu Sports scuttled that joint venture service.
It appears Disney is not out of the woods when it comes to scrutiny for its moves in the live TV streaming world. The company has announced plans to merge its live TV service Hulu + Live TV with the sports-centric platform Fubo, but it appears that those plans will have to wait until the federal government signs off. However, according to Puck's Eriq Gardner, the Department of Justice is set to officially open an investigation into the combination of the two streaming services.
Key Details:
- Everyone has questions: Scrutiny of the Hulu + Live TV and Fubo merger is coming from both sides of the aisle.
- A new Venu?: The government was also not keen on Disney’s joint venture streamer Venu Sports.
- Other options: Disney is still launching an ESPN streaming service of its own, should all other efforts fail.
The merger between Hulu + Live TV and Fubo was announced in January, but it has already faced doubts from high-ranking government officials. Senator Elizabeth Warren (D-MA) asked the Department of Justice to look into the merger in February, and it appears that request has now been granted.
“Disney’s proposed acquisition of Fubo threatens to significantly decrease competition in the [live television streaming] market in presumptive violation of antitrust law,” Warren said of the proposed merger.
The current administration has been eager to use the power of government to investigate media companies it feels have been unfair to it, but this resistance to the combination of Fubo and Hulu + Live TV is more bipartisan in nature. Warren and other Democrats led the charge against Venu Sports, the joint venture sports streamer that Disney planned to launch in conjunction with Fox and Warner Bros. Discovery.
At the time, Fubo filed an antitrust lawsuit against Venu’s owners just days after the streamer was announced, and won an injunction that blocked it from launching. As Disney faced the possibility that it would lose that court battle, it pivoted to a deal with Fubo that would see Disney take 70% ownership of Fubo. The plan was to keep Hulu + Live TV and Fubo operating as separate services, and for Fubo to create a new streaming platform to add to the marketplace.
There were already lots of unanswered questions about the proposed merger of Hulu + Live TV and Fubo, and now another big one has been added to the pile. Disney and Fubo would no doubt like to move forward with the transaction, but now must wait to see if the DOJ’s investigation will scuttle the deal altogether.
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Fubo
Fubo is a live TV streaming service offering a robust lineup of approximately 150 premier channels, with plans starting at $63.99 per month. This entry-level package provides access to local broadcast affiliates 18 of the leading 35 cable channels channels, and valuable regional sports networks (RSNs).
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Hulu Live TV
Hulu Live TV is a live TV streaming service with more than 70 channels for $89.99 per month. Hulu + Live TV base plan includes local channels 32 of the top 35 cable channels, and regional sports networks (RSNs). Subscribers get free access to Disney+ and ESPN Select at no extra charge.
