Warren Urges DOJ To Closely Scrutinize Proposed Disney-Fubo Deal, Warns of Increased Costs for Television Viewers

“If the takeover of Fubo is successful, Disney and Fubo will only increase their leverage, and could use the reduced competition and the resultant market power to raise prices even further for sports fans across the country.”
Text of Letter (PDF)
Washington, D.C. –U.S. Senator Elizabeth Warren (D-Mass.) wrote to Omeed Assefi, Acting Assistant Attorney General for the United States Department of Justice’s (DOJ) Antitrust Division, calling on the agency to closely scrutinize Disney’s proposed acquisition of FuboTV (Fubo).
The deal, announced last month, resolves a lawsuit that Fubo filed in February 2024 against Disney, Fox, and Warner Bros. Discovery, which at the time collectively controlled more than 80% of nationally broadcast sports. A federal judge found that the three companies’ joint venture, Venu Sports, likely violated antitrust law. Disney’s proposed acquisition of Fubo appears to allow Disney to simultaneously circumvent the negative outcome of the lawsuit while eliminating a competitor.
“This proposed acquisition raises significant concerns under antitrust law, would give Disney increased market power and incentives to increase costs for viewers, and should be regarded as another data point in Disney’s history of anticompetitive behavior,”wrote Senator Warren. “I urge DOJ not to be fooled by Disney’s attempt to purchase its way around antitrust law, and to closely scrutinize this proposed acquisition.”
Senator Warren firstraised concernsabout Venu Sports in August 2024. Later that month, the U.S. District Court for the Southern District of New York enjoined the launch of that venture. Shortly after Disney appealed to the U.S. Court of Appeals for the Second Circuit, the DOJ’s Antitrust Division filed an amicus brief supporting the District Court’s findings that Venu Sports would have anticompetitive effects on the market.
Disney’s proposed acquisition of Fubo is inextricably linked to the company’s attempt to dominate the sports streaming marketplace through Venu Sports. Disney directly competes with Fubo through Hulu + Live TV. Since acquiring Hulu in 2019, Disney has raised the price of Hulu + Live TV by 85%, from $45 per month to $82.99 per month, while using its market power to lead competitors to raise prices as well. If the takeover of Fubo is successful, Disney will only increase its leverage, and could use the reduced competition and the resultant market power to raise prices even further for sports fans across the country.
“Disney has proposed a plan to acquire its competitor, and, in the process become an even more powerful force in an already highly-concentrated market,”wrote Senator Warren. “I urge DOJ to continue [its] work on behalf of viewers by closely scrutinizing this proposed deal and blocking it if it violates antitrust law.”
Senator Warren has long fought to crack down on corporate consolidation that threatens consumers and raises prices:
###