FuboTV Inc. (FUBO) saw its shares surge 8.2% in pre-market trading on Friday after major media giants Disney, Fox, and Warner Bros. Discovery announced that they have scrapped plans to launch their jointly owned sports streaming platform Venu Sports.

The decision by Disney, Fox, and Warner Bros. to discontinue the Venu Sports joint venture removes a major competitive threat for FuboTV in the sports streaming market. In a statement, the media companies said, "After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service. 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."

FuboTV, a sports-focused streaming service, had been facing the prospect of increased competition from the deep-pocketed Venu Sports platform backed by media heavyweights. However, with Venu Sports now scrapped, FuboTV's path to growth in the sports streaming space has become clearer, driving investor optimism and pushing its stock higher in pre-market trading.