Officials at the U.S. Department of Justice are probing Disney's (DIS.N) deal to take a controlling stake in streaming company FuboTV (FUBO.N), Bloomberg News reported on Wednesday, citing people familiar with the plans.
The DOJ is looking into whether the deal would unduly concentrate the market for sports streaming, the report said.
The Justice Department declined to comment, while Fubo said it was still working through the regulatory process of the deal.
Disney did not immediately respond to a Reuters request for comment.
In January, Disney said it would merge its Hulu + Live TV business with smaller rival Fubo to create the second-biggest online pay-TV company in North America, behind YouTube TV.
The combination was seen as key to clearing the way for the launch of Disney's sports streaming venture Venu Sports with Fox Corp (FOXA.O) and Warner Bros Discovery (WBD.O), which the companies decided to discontinue.
Disney was set to hold a 70% majority stake in the combined venture with Fubo that would be led by the streaming company's CEO and co-founder, David Gandler. The deal excludes Hulu's mainstay video-streaming business.
U.S. Senator Elizabeth Warren had called on the DOJ's antitrust division to scrutinize Disney's proposed deal with Fubo in February.
