08:35 AM EDT, 08/19/2024 (MT Newswires) -- (Updates with statement from Disney's ( DIS ) ESPN ( DIS ), Fox and Warner Bros. in the third paragraph)

FuboTV ( FUBO ) shares jumped early Monday following a court ruling to temporarily block the launch of a rival sports streaming service platform backed by Walt Disney ( DIS ) , Fox (FOXA, FOX) and Warner Bros. Discovery ( WBD ) .

The US District Court for the Southern District of New York on Friday issued a preliminary injunction against the media giants' Venu Sports joint venture, citing their "near-monopolistic control" over the ability of an alternate sports streaming platform to exist in the market. The companies' control in the market will provide "powerful" incentives to "thwart competition and hike prices" on both consumers and other distributors, according to the court filing.

"We respectfully disagree with the court's ruling and are appealing it," Disney ( DIS ) subsidiary ESPN ( DIS ), Fox and Warner Bros. said in an emailed statement to MT Newswires. "We believe that Fubo's arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction."

In February, ESPN ( DIS ), Fox and Warner Bros. agreed on principal terms to jointly launch a new streaming platform offering content from various sporting leagues, events and tournaments. The platform, which was set to launch this fall for $42.99 per month, will combine the companies' sports network portfolios, certain direct-to-consumer sports services and sports rights.

FuboTV ( FUBO ) filed an antitrust lawsuit against the venture later in February, claiming the media companies "engaged in a years-long campaign to block" its sports-focused live-streaming business, resulting in "significant harm" to the company and its customers.

Fubo is "likely to be successful in proving its claims" that the joint venture will break antitrust laws and cause "irreplaceable harm" to the company and its US customers in the absence of an injunction, US District Judge Margaret Garnett said in the court ruling. The stay will remain in place until the completion of the legal proceedings. Shares of Fubo spiked 14% in recent premarket activity Monday.

"This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options," Fubo Chief Executive David Gandler said in the Friday statement. "A fair and competitive marketplace is necessary to provide consumers with multiple, robust and more affordable sports streaming options."

The company aims to move forward with its lawsuit against the venture partners and their affiliates. A court date for the lawsuit hasn't been announced yet, according to Fubo.

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