Fubo says it will face ‘insolvency’ if Venu is allowed to launch as planned

Attorneys for streamer Fubo told a U.S. district judge that the streamer “will face insolvency” if the ESPN–Warner Bros. Discovery–Fox joint venture Venu Sports launches and called on the court to take action in the form of a temporary injunction.

As previously announced, Fubo has filed an antitrust over the proposed launch of Venu, and an Aug. 13, 2024, hearing was a major initial step in how the lawsuit might shake out.

This early decision focuses on whether a preliminary injunction should be issued that could delay or halt the launch of Venu.

For its part, Fubo’s legal team alleged that the backers of Venu have engaged in anticompetitive practices for years — not just with the Venu offering.

Attorneys argued that these alleged moves have made it difficult for Fubo, which is marketed heavily as a sports streamer, to create a commercially viable “skinny” sports offering to consumers, which has put the company in a “precarious” financial situation.

They said that Fubo would face insolvency if no action is taken — while arguing Venu would not suffer significantly should an injunction be issued and the case turned over to trial.

Venu fired back saying that Fubo’s financial fate isn’t its concern and that it can distribute, bundle and sell its offers however it wants. The team also argued that the figures Fubo presented in court don’t actually demonstrate any harm, citing midpoint estimates of subscriber count and revenue projection that shows it would likely be posting growth even after Venu launches around Sept. 1, 2024.

The Venu is also the target of concern from lawmakers, including calls for the FCC and Department of Justice to investigate the venture. DirecTV and Dish have also lent their support to Fubo in the issue. 

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