Shares of fuboTV Inc. (FUBO) plummeted 5.33% in intraday trading following reports that the U.S. Department of Justice (DOJ) is investigating Disney's deal to take a controlling stake in the streaming company. The news has raised concerns among investors about potential regulatory hurdles for the high-profile agreement.
According to Bloomberg News, DOJ antitrust officials are looking into the Disney-FuboTV deal over competition concerns. The probe suggests that regulators are scrutinizing the potential impact of the acquisition on the streaming and sports broadcasting markets. This development comes as both companies have been positioning themselves in the evolving landscape of digital media and live sports streaming.
The DOJ's involvement could potentially delay or complicate the deal's completion, which may explain the sharp decline in fuboTV's stock price. Investors appear to be reacting to the uncertainty surrounding the transaction, which was seen as a significant opportunity for fuboTV to leverage Disney's resources and expand its market presence. As the investigation unfolds, market participants will be closely watching for any updates that could affect the future of both companies in the competitive streaming industry.
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