Venu Sports Joint Venture Abandoned by Disney, Fox, and Warner Bros Discovery
The media giants created the streaming venture to try to attract younger viewers who do not subscribe to cable TV, with the idea being to bundle their massive portfolio of sports rights including the National Football League, the National Basketball Association and the Fifa World Cup.
Reason for Abandonment
The companies have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service, citing substantial legal opposition.
Impact on Stocks
Shares of Warner Bros Discovery were down about 2 per cent, Fox’s stock fell about 1 per cent, while FuboTV’s shares were up nearly 8 per cent after the surprise announcement.
Background
Media companies have been looking to capitalise on the growing popularity of live sports and investing large sums to bring audiences to their platforms and boost viewership.
Original Plans
Venu had plans for five million subscribers in its first year.
Conclusion
The abrupt move to abandon the Venu Sports joint venture comes as a surprise, especially after Disney appeared to have removed one legal obstacle to the deal. However, the legal troubles ahead may have been too much for the companies to overcome.
FAQs
Q: Why did Disney, Fox, and Warner Bros Discovery abandon the Venu Sports joint venture?
A: The companies cited substantial legal opposition as the reason for abandoning the venture.
Q: What was the original plan for Venu Sports?
A: Venu had plans for five million subscribers in its first year.
Q: How did the stock market react to the news?
A: Shares of Warner Bros Discovery were down about 2 per cent, Fox’s stock fell about 1 per cent, while FuboTV’s shares were up nearly 8 per cent after the surprise announcement.
