Street View: FuboTV's balance sheet may see green shoots on Disney deal

FuboTV

07/01/2025 14:51

** Walt Disney Co  DIS.N  said on Monday it would merge its
Hulu + Live TV business with smaller rival FuboTV  FUBO.N ,
removing a significant hurdle to the launch of its sports
streaming venture with Fox Corp  FOXA.O  and Warner Bros
Discovery  WBD.O 
    
    SPORTS-CENTRIC MOVES
    ** J.P.Morgan views the deal "favourable" as it resolves
Fubo's imminent balance sheet challenges, provides business with
more scale and offers the ability to package into a skinnier
sports tier 
    ** The agreement is a positive step for FUBO and other
distributors, enabling a leaner, sports-focused package that
will begin to alleviate a key industry risk, adds JPM
    ** BTIG says deal has immediate, positive implications for
FUBO from a balance sheet and enterprise value viewpoint and
could position FUBO to offer a highly competitive news plus
sports skinny bundle
    ** Macquarie says Fubo's deal does not "move the needle"
much for DIS on the financial front, but it could help
consolidate Disney's distribution business, opening
opportunities in carriage negotiations and programmatic
advertising
    ** Wedbush says combined entity will be slightly smaller
than competitors Sling TV and YouTube TV, but is well-positioned
to attract "cord nevers" over the next decade

 (Reporting by Akriti Shah)
 ((akriti.shah@thomsonreuters.com))