Why Disney was willing to pay up to help launch a new sports streamer

Venu Sports Streaming Service Relaunch - Venu, a sports streaming service co-owned by Disney, Fox, and Warner Bros Discovery, is set to relaunch after being delayed due to an antitrust lawsuit filed by Fubo [1] - Disney and its partners have settled with Fubo, paying $220 million collectively and agreeing to merge Hulu + Live with Fubo's service into a new joint venture [2][6] - The new joint venture will be 70$145 million next year to help pay down its debt, and Fubo will receive a $130 million fee if the deal fails to gain regulatory approval [7] Market Impact and Timing - Fubo's stock surged 172$4 following the announcement, though it remains far below its 2021 peak of $49 [7] - Venu's launch is expected in spring 2024, ahead of Disney's standalone ESPN streaming service "Flagship" planned for fall 2024, to avoid overlapping launches [8][9] - The relaunch timing aligns with major sports events like the Super Bowl (February 9) and college basketball's March tournament [9] Strategic Implications for Disney - The deal highlights Disney's lack of full confidence in its standalone ESPN streaming service, as it seeks to be part of a larger sports streaming ecosystem through Venu [4] - By next fall, ESPN viewers will have multiple options: standalone ESPN, sports-streaming packages with other channels, or large bundles from traditional and digital pay TV providers [5]