Benzinga - by Adam Eckert, Benzinga Staff Writer.
Shares of several large media companies are moving after the close on Tuesday following a joint venture deal between multiple media giants.
What To Know: ESPN, a subsidiary of Walt Disney Co (NYSE:DIS), Warner Bros. Discovery Inc (NASDAQ:WBD) and Fox Corp (NASDAQ:FOX)(NASDAQ:FOXA) have reached an agreement to launch a joint sports streaming service in the fall.
The trio of media giants reached an understanding on principal terms to form a new joint venture to build an innovative new platform for streaming sports. The new platform will be made available directly to consumers through a new app.
Subscribers will gain access to ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS and truTV, as well as ESPN+. Subscribers will have the option to bundle the product with Disney+, Hulu and Max.
The name and price of the new streaming service will not be released until definitive agreements are reached among the companies involved.
“The launch of this new streaming sports service is a significant moment for Disney and ESPN, a major win for sports fans, and an important step forward for the media business,” said Bob Iger, CEO of Disney.
Lachlan Murdoch, executive chair and CEO of Fox, noted the company is “pumped” to bring the Fox sports portfolio to the new platform to provide fans with an array of amazing sports content. David Zaslav, CEO of Warner Bros. Discovery, added that the deal will bring together an “unparalleled” combination of marquee sports rights.
“This new sports service exemplifies our ability as an industry to drive innovation and provide consumers with more choice, enjoyment and value and we’re thrilled to deliver it to sports fans,” Zaslav said.
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DIS, WBD, FOX Price Action: Fox Corp and Warner Bros shares were both up more than 3% in Tuesday’s after-hours session, while Disney shares were down about 1% on the news.
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