FuboTV extends gains after deal with Disney to combine live TV businesses

FuboTV

07/01/2025 15:52

(Updates)
    ** Shares of streaming platform FuboTV  FUBO.N  rise 16.5%
to $5.90
    ** FUBO shares more than tripled and added more than $1.20
bln to its market value on Monday, after Walt Disney  DIS.N 
agreed to merge its Hulu + Live TV streaming service with the
smaller rival
    ** The deal will create the second-biggest digital pay-TV
provider in North America, behind YouTube TV  GOOGL.O , with
around $6 bln in revenue and 6.2 mln subscribers
    ** Deal also removes a key hurdle to the launch of Venu
Sports, a sports streaming venture formed by DIS, Fox Corp
 FOXA.O  and Warner Bros Discovery  WBD.O 
    ** "This combination with Fubo doesn't move the needle much,
but strategically we think it's a good move to help consolidate
the distribution business further" - Macquarie
    ** J.P.Morgan views the transaction favorably as it resolves
Fubo's imminent balance sheet challenges, provides the business
with more scale and offers the ability to package into a
skinnier sports tier
    ** Average rating of 8 analysts covering FUBO stock is
"hold", median PT is $2.80 - data compiled by LSEG
    ** FUBO shares were down ~60% in 2024

 (Reporting by Jaspreet Singh in Bengaluru)
 ((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))