Disney(US:DIS) Benzinga·2025-02-20 20:25Core Viewpoint - Senator Elizabeth Warren is raising antitrust concerns regarding Walt Disney Company's proposed acquisition of FuboTV, suggesting it could lead to higher costs for consumers in the sports streaming market [1][2]. Group 1: Antitrust Concerns - Warren's letter to the Department of Justice emphasizes that the acquisition could enhance Disney's market power and incentivize increased costs for viewers, marking it as a continuation of Disney's history of anticompetitive behavior [2][3]. - The proposed acquisition is seen as a way for Disney to circumvent a previous lawsuit filed by Fubo against Disney and others, allowing Disney to eliminate competition in the sports streaming sector [3][4]. Group 2: Market Dynamics - The merger would result in Disney controlling 70% of the combined entity of Hulu + Live TV and Fubo, further consolidating its power in an already concentrated market [5]. - Warren accuses Disney of forcing companies to carry less desirable content to gain access to ESPN, which has historically led to increased costs for consumers [4]. Group 3: Legal and Financial Implications - The letter from Warren coincides with ongoing litigation against Disney by investors, which centers on claims made by former CEO Bob Chapek regarding the Disney+ platform's growth and profitability [6][7]. - The investor lawsuit highlights that Disney's stock dropped approximately 55% from December 2020 to May 2023, indicating significant financial challenges during that period [7]. Group 4: Stock Performance - Following the news of Warren's letter and the ongoing lawsuit, Disney's stock has decreased by 1.3% to $109.87, with a 52-week trading range of $83.91 to $123.74 [8]. - Fubo's stock has also seen a decline of 1.8% to $3.79, despite being up 90% over the past year, reflecting market volatility amid these developments [9].