Investing.com -- Disney, Fox, and Warner Bros. Discovery (NASDAQ:WBD) have decided to discontinue their joint venture, Venu Sports, a proposed virtual multichannel video programming distributor (vMVPD) service.
The three media giants announced their decision in a joint statement, citing a shift in focus toward existing products and distribution channels to better meet the evolving demands of sports fans.
“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” the companies said in the statement. “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. We are proud of the work that has been done on Venu to date and grateful to the Venu staff, whom we will support through this transition period.”
Venu Sports, first announced in February, aimed to merge the live sports assets of Fox, Warner Bros. Discovery, and Disney-owned ESPN into a single streaming service.
The service was initially expected to launch before the NFL season in September. However, its debut was delayed due to a legal challenge from streaming platform Fubo, which argued that the venture would be anticompetitive.
The litigation between Disney (NYSE:DIS) and Fubo was resolved earlier this week as part of a broader agreement to combine Disney's Hulu+ Live TV with Fubo's internet TV bundle.
Following the settlement, Fubo’s stock saw a significant uptick.