The Justice Department will scrutinize planned sports streaming platforms by Walt Disney Co., Fox Co. and Warner Bros. Discovery Inc. over concerns they could harm consumers, sports leagues and rivals. Bloomberg Law reported on Thursday.
The report added that regulators will scrutinize the terms of the deal once it is finalized, citing two people familiar with the matter.
Earlier this month, the three media giants announced they would form a joint venture to launch sports streaming services this fall in a bid to reach younger viewers.
The media company owns a wide range of professional and collegiate sports rights, spanning the National Football League, National Basketball Association, Major League Baseball, FIFA World Cup, and college competitions.
The new app provides non-exclusive access to a collection of TV sports networks and streamed content, including ESPN, Fox Sports 1, and TNT.
Fox, Warner Bros. Discovery and Disney were not immediately available for comment, while the Justice Department declined to comment.
Disney also announced that it will launch a standalone streaming version of ESPN in fall 2025, incorporating digital features such as sports betting, fantasy sports, and e-commerce.
Disney CEO Bob Iger told investors during the company’s quarterly earnings call that ESPN’s digital services offer “a one-stop sports destination unlike anything available in the market today.” He said he would produce it.
