The Department of Justice is planning to scrutinize Walt Disney, Fox and Warner Bros Discovery’s planned sports streaming platform over concerns that it could harm consumers, sports leagues and rivals, Bloomberg Law reported on Thursday.
The regulators will examine the terms of the deal when it is finalized, the report added, citing two people familiar with the matter.
Earlier this month, the three media giants said they will launch a joint venture to start a sports streaming service this autumn to capture younger viewers.
The media companies have a broad portfolio of professional and collegiate sports rights, which span the National Football League, the National Basketball Association, Major League Baseball, FIFA World Cup and college competitions.
A new app would provide non-exclusive access to a collection of television sports networks, including ESPN, Fox Sports 1 and TNT, as well as to content that is streamed.
Fox, Warner Bros Discovery and Disney could not immediately be reached for comment, while the Justice department declined to comment.
Disney also announced it would launch a stand-alone streaming version of ESPN in autumn of 2025, which would incorporate digital features, such as sports betting, fantasy sports and e-commerce.
Disney CEO Bob Iger told investors during the company’s quarterly results call that the digital ESPN offering creates “a one-stop sports destination unlike anything available in the marketplace today.”
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