When Disney announced plans to take a controlling stake in Fubo and merge it with Hulu + Live TV, it looked like a strategic three-in-one: end a lawsuit, shut down a redundant joint venture, and scale a competitive sports streaming product. Now, the Department of Justice is reportedly examining whether that strategy crosses an antitrust line.
According to Bloomberg and other outlets, the DOJ is looking into whether the proposed merger would give Disney too much power in the sports streaming space. While the agency hasn’t made a public announcement, sources familiar with the matter say the probe is in motion. The timing follows a February letter from Senator Elizabeth Warren, who urged the DOJ to scrutinize the deal on the grounds that it could reduce competition and drive up prices for consumers.
In January, Disney revealed its plan to merge Hulu + Live TV with Fubo. Under the terms, Disney would end up owning about 70 percent of the combined company, which would instantly become the second-largest digital pay-TV provider in North America, trailing only YouTube TV. The agreement also settled an antitrust lawsuit Fubo had filed against Disney, Fox, and Warner Bros. Discovery, which challenged their joint plan to launch a sports-centric streaming platform called Venu. Shortly after the deal was announced, plans for Venu were shelved.
As part of the resolution, Fubo is set to receive $220 million from Disney, Fox, and WBD. Additionally, Disney has committed to providing a $145 million term loan to Fubo in 2026. The merger also opens the door for Fubo to offer a new Sports & Broadcasting tier, bundling content from Disney, Fox, and ESPN+.
The DOJ’s interest in the deal underscores growing regulatory concern about market concentration in the evolving streaming ecosystem. Sports streaming is a particularly high-stakes segment, with live rights driving significant consumer engagement and subscription revenue. Disney, which already commands massive influence via ESPN, would gain additional distribution control through this merger.
At the same time, competitors are moving quickly to launch slimmer, more affordable sports bundles. DirecTV recently rolled out “MySports,” a pared-down package of local and national sports channels. Comcast followed suit with a new sports-and-news streaming offer targeting broadband customers. And Disney is preparing to debut its own direct-to-consumer version of ESPN this fall.
In that broader context, the DOJ’s probe could set an important precedent. If the agency ultimately moves to block or restructure the deal, it would signal that regulators intend to play a more active role in shaping how streaming rights are packaged and distributed, particularly when dominant players like Disney are involved.
