Shares of fuboTV ( FUBO 17.65% ) Stock prices experienced a significant increase today following the announcement on Friday night that a judge has issued a temporary restraining order against Venu, a collaborative sports streaming service venture. Walt Disney , Fox , and Discovery Warner Bros. .
The upcoming service was anticipated to rival and possibly surpass fuboTV, which has had difficulty gaining momentum since economies started to reopen following the lockdown period of the COVID-19 pandemic.
By 11:43 a.m. Eastern Time, the stock had increased by 29.7%.
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The decision of the court
Judge Margaret Garrett issued a restraining order against the recently launched streaming platform, following a legal action brought by fuboTV alleging anticompetitive behavior by the collaboration.
Garrett observed that Disney, Fox, and Warner Bros. Discovery have dominance over 54% of sports rights in the United States, as well as a minimum of 60% of sports rights broadcast nationally in the country, indicating that their control may be even greater. An attorney representing Warner Bros. Discovery mentioned during the hearing that an injunction would be fatal for Venu.
The recent development is undoubtedly a win for fuboTV, however, it remains uncertain whether it will permanently hinder the launch of the new service.
What does the future hold for fuboTV?
Fierce competition from major sports media companies poses a serious threat to fuboTV’s survival, making it essential for investors that the current course of action is maintained. Despite facing no direct competition in the sports streaming sector, the company has encountered difficulties.
The company is experiencing strong growth in revenue, which has increased by 25% to $391 million. However, despite this positive trend, the company is still facing losses in terms of adjusted earnings before interest, taxes, depreciation, and amortization. EBITDA A loss of $11 million resulted in a net loss of $25.8 million during the second quarter.
Although the company is advancing, its success could be threatened by the emergence of a new competitor like Venu or the upcoming introduction of ESPN’s main streaming service in the following year.
Stay updated on the latest news regarding Venu as it may influence the performance of fuboTV stock.
