On Monday Eastern Time, Bloomberg cited sources that Disney is about to announce a partnership agreement with the sports streaming service FuboTV.

The news is expected to be officially announced on Monday morning Eastern Time.

According to the terms of the agreement, FuboTV will receive $0.22 billion in Cash from Disney, Fox, and Warner Bros. Discovery.

As a result of this news, during Pre-Market Trading on Monday, FuboTV's stock price soared over 220% at one point, and during early trading, it increased by over 176%. As of last Friday, FuboTV's Market Cap was approximately 0.48 billion USD.

The controversy surrounding Venu Sports will be resolved.

FuboTV is the main service provided by Fubo, focusing on live streaming of sports events and other Entertainment content over Internet Plus-Related, allowing customers to watch television programs and sports events through a FuboTV subscription.

FuboTV's feature lies in its focus on sports content, especially live broadcasts of sports events including soccer, basketball, and baseball.

This collaboration with Disney marks a further strengthening of FuboTV's position in the fiercely competitive sports streaming market.

It is worth noting that this agreement also means FuboTV will abandon its lawsuit against Venu Sports. Venu Sports is a sports streaming platform launched in collaboration by Disney's ESPN, Warner Bros, and Fox, planning to provide live broadcasts of multiple sports events including the NBA (National Basketball Association), MLB (Major League Baseball), NFL (National Football League), and college sporting events.

FuboTV had previously filed a lawsuit in February 2024 to try to prevent the launch of Venu Sports, arguing that the three companies refused to provide some of their sports channels to Fubo, which could weaken Fubo's competitiveness in the market and lose some users.

In August 2024, a judge in the Fubo lawsuit ruled that the launch of Venu Sports could "significantly reduce competition and restrict trade," suspending the service's launch. The judge believed that Venu Sports might create unfair competition in the market. Disney, Fox, and Warner Bros believed the judge's ruling was unfair, so they decided to appeal.

This lawsuit has attracted widespread attention because Venu Sports plans to launch in the fall of 2024 and aims to attract a large number of users, especially sports fans, by offering a rich array of sports events. The subscription fee for Venu Sports is set at $42.99 per month, which is much cheaper than traditional cable TV packages, which typically exceed $100 per month.

One of the reasons why traditional cable TV packages are expensive is that they usually include a large number of channels, although most users may only be interested in a portion of them. In contrast, Venu Sports' pricing strategy deliberately reduces the amount of content, focusing on sports events, allowing it to offer more competitive pricing ($42.99 per month) while catering to consumers who are only interested in sports content.

Additionally, the launch of Venu Sports has also created a competitive relationship with Disney's ESPN. ESPN is Disney's Sports media brand that plans to launch its own direct-to-consumer DTC streaming platform in 2024.