Shares of fuboTV Inc. (NYSE:FUBO) skyrocketed over 33% on Monday following a major legal victory that secured a preliminary injunction against Disney, Fox, and Warner Brothers Discovery.
The injunction, granted by U.S. District Judge Margaret Garnett, bars the three media giants from launching their sports-centric virtual multichannel video programming distributor (vMVPD) service, Venu.
According to Needham & Company, this ruling is a significant win for fuboTV, which they estimate will potentially lead to a "75% chance of killing Venu."
The firm cites several reasons for this, including the likelihood that Venu will now miss the crucial NFL season and the potential perception that a joint venture between these large companies could be deemed anticompetitive by the courts.
Needham also notes that Warner Brothers Discovery (WBD) could weaken the partnership, especially after losing NBA rights following the upcoming season.
"Maybe ESPN and FOX should try for approval alone," the firm suggests, while highlighting the possibility that Disney may shift its focus to launching its ESPN Flagship direct-to-consumer app in the second half of 2025, potentially abandoning the vMVPD strategy altogether.
Judge Garnett’s opinion was clear on the potential antitrust concerns, stating that "such a concentrated collection of media power would eliminate consumers’ choices...and hike prices on both consumers and other distributors."
Needham analysts also pointed out that the injunction could remain in place until at least the second half of 2025, severely limiting Venu’s strategic potential.
This court decision not only prevents a formidable competitor from entering the market but also boosts fuboTV's position as a player in sports streaming.