The U.S. Department of Justice is probing Disney’s deal to take a controlling stake in FuboTV, Bloomberg reports. Fubo is a live TV streaming service known for its extensive sports coverage. Officials are examining whether the deal would create a concentration of power in the sports streaming market.
In January, Disney announced that it was going to merge its Hulu + Live TV streaming service with Fubo, ultimately creating the second-largest digital pay-TV provider behind YouTube TV. Under the terms of the deal, Disney would own about 70% of Fubo.
The deal ended a lawsuit that Fubo had filed against Disney, Fox, and Warner Bros. Discovery over their planned sports streaming service, Venu. Days after the deal was announced, the companies scrapped plans for Venu. Disney and Fox had agreed to pay Fubo $220 million to drop the lawsuit.
Bloomberg’s report comes two months after Sen. Elizabeth Warren urged the DOJ to investigate the Disney-Fubo deal, noting that the agreement was a way for Disney to dodge a lawsuit and scoop up the competition.
