By Isabella Simonetti

Disney's ESPN, Fox Corp. and Warner Bros. Discovery aren't moving forward with their joint streaming venture Venu Sports, the companies said Friday, calling off what would have been a major bet as the industry's dynamics shift rapidly.

Earlier this week, Disney agreed to merge its Hulu + Live TV service with sports-focused FuboTV and take a controlling interest in the combined company. The deal also put an end to Fubo's litigation over the formation of Venu.

"In an ever-changing marketplace, we determined that it was best to meet the evolving demands of sports fans by focusing on existing products and distribution channels," the three companies said in a joint statement about the end of Venu.

In 2024, the three media giants announced plans to pool some of their most valuable sports programming into a joint streaming service that would serve sports fans who want access to live sports content.

Shortly after, Fubo sued to block the launch of Venu, alleging the companies wouldn't let Fubo carry a small bundle of sports-focused channels that they were looking to include in the new service.

In August, a judge granted a preliminary injunction to block Venu's launch while the litigation continued, saying the service would "substantially lessen competition and restrain trade." Venu's three partners appealed the decision.

Disney, Fox and Warner are making an aggregate cash payment of $220 million to Fubo to resolve the legal dispute.

Fox and The Wall Street Journal's parent, News Corp, share common ownership.

Write to Isabella Simonetti at isabella.simonetti@wsj.com

(END) Dow Jones Newswires

January 10, 2025 09:00 ET (14:00 GMT)

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