Venu Sports, the proposed virtual MVPD service from ESPN, FOX and Warner Bros. Discovery, will be discontinued, the three companies said in what they called a collective decision not to move forward with the contemplated joint venture.

The decision is effective immediately. The move is surprise as a transaction announced earlier this week between Disney and Fubo appeared to have paved the way for Venu to launch. The debut of the sports streaming service had been delayed by a Fubo lawsuit that was headed to court.

“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service. In an ever-changing marketplace, we determined that it was best to meet the evolving demands of sports fans by focusing on existing products and distribution channels. We are proud of the work that has been done on Venu to date and grateful to the Venu staff, whom we will support through this transition period.”

It’s an odd look so soon after settling but Deadline hears the three partners came together and after serious reflection decided to end Venu. The distribution situation on the ground had changed with the market moving to more so-called “skinny bundles” of content, as per Disney’s distribution deal with DirecTV as well as those anticipated with Fubo and venture partners. Disney in particular, we hear, was focused on the launch of flagship streamer ESPN+ set for fall of 2025.

There was also a risk that other players might have picked up the legal fight even after Fubo withdrew.

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