(Bloomberg) -- Walt Disney Co.'s ESPN, Fox Corp. and Warner Bros. Discovery Inc. are joining forces to launch a sports-focused streaming service that will feature major college and pro games usually seen only on traditional TV.
The service will be one-third owned by each company. Pricing and a name for the service have yet to be determined. They expect to launch the new service by fall 2024, according to a statement Tuesday.
With the announcement, three legacy media giants are taking their biggest, most-expensive sports programming online. As part of the announcement, the parties said subscribers would be able to bundle the service with others, including Disney+, Hulu and Max.
The aim is to draw in viewers who don't subscribe to a pay-television bundle — and offer them all of the sports that come with such a package. It will include Disney's ESPN and ABC networks, Fox, and Warner channels including TNT and TBS. The package will feature some of the most-viewed shows, including and NCAA college basketball.
Neither Comcast Corp.'s NBC network nor Paramount Global's CBS network is participating in the new venture. Both are major sports broadcasters, with rights to the NFL and other leagues.
Major sports have been moving to streaming services. Amazon.com Inc. carries the NFL's package. Alphabet Inc.'s YouTube recently acquired the rights to football's Sunday Ticket.
Shares of Fox rose as much as 4.4% to $33 in extended trading following the news, while Warner Bros. added as much as 4.8% to $10.55
Disney fell as much as 1.8% to $97.55. The company has said it one day plans to offer its flagship ESPN sports channel directly to consumers, and it wasn't immediately clear how the new plans will affect that effort.
Investors in Disney and Fox may learn more about the venture on Wednesday, when both companies report financial results and will field calls from analysts.
(Updates with after-market trading.)
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