Jan 9 (Reuters) - U.S. satellite TV provider DirecTV on

Thursday challenged a dismissal of FuboTV's ( FUBO ) lawsuit

against Venu Sports, the streaming service planned by Walt

Disney ( DIS ), Fox and Warner Bros Discovery ( WBD ), saying it does not

resolve antitrust issues around the joint venture.

DirecTV's challenge marks the latest development in a battle

between media companies for dominance in the pay TV market.

FuboTV ( FUBO ) sued the three media giants behind Venu in February last

year, claiming the sports streaming venture would reduce

competition and increase prices for consumers. The deal was

temporarily blocked by a U.S. judge in August.

On Monday FuboTV asked the U.S. District Court in Manhattan to

dismiss its lawsuit against Venu after Walt Disney ( DIS ) said

it would merge its Hulu + Live TV business with FuboTV ( FUBO ), creating

the second-biggest digital pay-TV provider.

Under the litigation settlement, the companies will pay Fubo

$220 million in cash, with Disney ( DIS ) also committing to a $145

million term loan for Fubo in 2026.

Disney ( DIS ) will enter into a licensing agreement that would

allow Fubo to create a sports-focused service featuring Disney's ( DIS )

sports and broadcast networks including ABC and ESPN ( DIS ), as well as

ESPN+.

But in a letter to U.S. Judge Margaret Garnett on Thursday,

DirecTV said that the settlement "restores an anticompetitive

runway for the JV (joint venture) defendants to control the

future of the live pay TV market."

Satellite TV provider EchoStar ( SATS ) wrote a similar

letter on Tuesday.

"By this settlement, defendants pay off and seek to subsume

the very competitor that raised these antitrust violations to

the Court," DirecTV said.