Law firm investigating Fubo over pay TV merger with Disney
A New York law firm is probing whether Fubo’s agreement to merge its pay TV business with that of Disney was in the best interest of shareholders.
Fubo TV, Inc. ($FUBO, operating as Fubo) is a streaming technology provider that operates a sports-centric service called Fubo in the United States, Canada and Spain, as well as a similar product called Molotov in France.
In the United States, Fubo offers a number of broadcast and cable networks through its programming partners, including the Walt Disney Company (ABC, ESPN, FX, National Geographic), Comcast’s NBC Universal (NBC, CNBC, USA Network, E!, Bravo, MSNBC), Fox Corporation (Fox, Fox News, Fox Sports 1, Fox Business), Paramount Global (CBS, MTV, VH1, BET, CBS Sports Network, Paramount Network), the E. W. Scripps Company (Ion, Laff, Grit, Scripps News), Sinclair (Comet, Charge, TBD, The Nest, Bally Sports) and others.
Fubo also owns or operates a number of free, ad-supported streaming TV channels, including the Fubo Sports Network and Maximum Effort Channel.
Fubo is based in New York City.
A New York law firm is probing whether Fubo’s agreement to merge its pay TV business with that of Disney was in the best interest of shareholders.
The discussions were sparked by Fubo’s willingness to settle its lawsuit over Venu Sports for $220 million.
Fubo agrees to drop its antitrust lawsuit over Venu Sports, and accept a $220 million settlement while agreeing to build out Disney’s sports and broadcast streaming product.
Even with the promotion offered by Optimum, Fubo is a more-expensive option to get MSG Networks compared to MSG Plus.
As is typical, the price Fubo must pay for the channels is the reason why they are no longer offered.
Sports broadcasters who backed Venu Sports this week lost a motion to dismiss the antitrust case brought by Fubo.
Fubo has stopped offering free trials on its sports-centric streaming service through the end of the year.
The U.S. Department of Justice and more than a dozen state attorneys general have filed briefs backing Fubo in its ongoing lawsuit against Venu Sports.
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Fubo is now forecasting fewer subscribers to end 2024 than it did in August, with total income projected to be about the same.
Fubo is the second streaming TV service to reach a carriage agreement for the Chicago Sports Network since it launched this month.
The launch of the Fubo streaming marketplace could provide the company with additional ammunition in its ongoing lawsuit over Venu Sports.