Disney might be all revved up for its latest streaming venture, but the company’s upcoming project with Fox and Warner Bros. Discovery will first be put under the microscope by the U.S. Department of Justice.
The Walt Disney Company is no stranger to major (and particular) scrutiny. Considering that they’ve been involved in some big-name projects over the years, the company is used to being in the public eye—whether for good or for less-than-savory news.
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U.S. DOJ to “Scrutinize” Disney, Warner Bros. Discovery, Fox’s New Venture
However, per the latest reports, Disney is about to come under scrutiny by the Department of Justice over concerns that the Mouse House’s upcoming venture could “harm consumers, sports leagues and rivals,” Reuters reported.
Disney CEO Bob Iger announced earlier this month that it would be launching a joint sports streaming venture with the two other companies this fall. Between them, they own the distribution rights to a wide range of sporting events, including the National Football League, the National Basketball Association, Major League Baseball, the FIFA World Cup, and college competitions.
Read More: Start of a New Era: Disney, Fox and Warner Bros. Team Up to Make Sports History
This new app would provide viewers “non-exclusive access” to various television sports networks and sports content, including ESPN, Fox Sports 1, and TNT.
However, a deal spanning these three behemoths is one to sit up and take notice of, and take notice the DOJ has. Due to these concerns about the deal’s possible harmful impacts, the DOJ has made its intentions clear to “examine the terms of the deal” when it is finalized and ready to be signed.
This news was first provided to Bloomberg Law by two people familiar with the matter.
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