The U.S. Department of Justice (DoJ) has officially launched an antitrust investigation into Disney’s acquisition of Fubo, a sports-centric streaming platform. The move follows rising concerns that the merger could significantly reduce competition in the already concentrated streaming and live TV market. Announced in January 2025, the Disney-Fubo deal would combine Disney’s Hulu + Live TV service with Fubo, positioning Disney as the majority owner with a 70% stake in the newly formed company, while existing Fubo shareholders retain the remaining 30%.
Critics, including major satellite TV providers Dish and DirecTV, have voiced apprehensions over the potential for Disney to expand its dominance in the virtual multichannel video programming distributor (vMVPD) market. Both companies lodged formal complaints alleging that the merger could stifle competition. In response, Disney and Fubo are currently cooperating with the DoJ’s information requests as they prepare for a possible legal challenge from the Trump administration.
Legal History and Market Power Raise Red Flags
The investigation comes on the heels of a resolved legal conflict between Fubo and several major media entities, including Disney, ESPN, Fox, and Warner Bros. Discovery (WBD). In February 2024, Fubo had filed a lawsuit aiming to block the Venu Sports joint venture—a sports streaming initiative backed by ESPN, Fox, and WBD—which was expected to aggregate more than half of U.S. sports rights into a single platform. However, following Disney’s acquisition of Fubo, the lawsuit was dropped, and Venu Sports was canceled altogether.
Senator Elizabeth Warren of Massachusetts has emerged as a prominent critic of the Disney-Fubo deal, arguing in a letter to the DoJ that Disney’s move “appears to allow Disney to simultaneously circumvent the lawsuit while gobbling up a competitor.” She warned that the acquisition could diminish market competition, raise consumer prices, and reflects a broader pattern of anti-competitive behavior by Disney. “This proposed acquisition raises significant concerns under antitrust law,” she emphasized, calling for robust federal oversight.
Implications for Consumers and the Streaming Landscape
Should the Disney-Fubo deal proceed, the combined streaming service will serve over 6.2 million subscribers across North America, allowing users to access live broadcast and cable networks via a variety of internet-connected devices. The integration will also bring Disney’s premier content—including ABC, ESPN, and ESPN+—into Fubo’s platform under a new carriage agreement. Meanwhile, Hulu + Live TV will continue operating within the Hulu app and be available as part of Disney’s broader streaming bundle, which includes Disney+ and ESPN+.
Despite the merger, the new company will maintain separate carriage negotiations for Hulu + Live TV and Fubo services, independent from Disney’s direct oversight. However, analysts warn that Disney’s strengthened control over live sports and streaming distribution could create long-term challenges for rival platforms and limit viewer choice.
As federal regulators examine the implications, the outcome of the DoJ’s investigation could have significant consequences for the streaming industry and the future of competitive media distribution in the U.S.
