Walt Disney's stock is experiencing a decline following the announcement that the company, along with Fox Corp. and Warner Bros. Discovery, has decided to discontinue their joint sports streaming venture, Venu Sports. The decision comes amid a rapidly changing media landscape and ongoing legal challenges. The Venu Sports project, which was initially announced with much anticipation, faced significant hurdles, including a lawsuit from Fubo that accused the partners of anticompetitive behavior. The legal battle resulted in a preliminary injunction that delayed the launch of the service, ultimately leading to the decision to scrap the venture altogether. Disney is now expected to shift its focus towards launching its flagship ESPN streaming service later this year, potentially in collaboration with Fox for sports content licensing.
The discontinuation of Venu Sports follows Disney's recent strategic moves, including a merger of its Hulu + Live TV service with Fubo, which resolved the antitrust lawsuit but raised concerns among other industry players like DirecTV and Dish Network. These companies have expressed apprehension over the settlement, suggesting it does not address the underlying competition issues. The evolving market dynamics and the legal complexities surrounding the Venu project have prompted Disney and its partners to reassess their priorities, opting to concentrate on existing products and distribution channels to better meet the demands of sports fans.
Walt Disney (DIS) shares closed at $108.65 on January 10th, down 1.01% from the previous close of $109.76.