FuboTV share surged to its 52-week high at $3.92, as investors showed faith in the company despite challenging market situations. Over the past week, share prices have gained a massive surge of 15.2% and a market capitalization of $481 million has caught the attention of investors. Despite the market challenges, the company maintained a strong growth rate of 24.45%. Additionally, FuboTV has joined a merger with Disney Walt and Hulu Live TV, creating the second largest online-pay TV services provider in North America.
The new partnership is expected to bring in around $6 billion in revenue and attract 6.2 million subscribers by offering internet-based TV packages as an alternative to traditional cable or satellite. Disney will own 70% of the joint venture, which will be led by Fubo CEO and co-founder David Gandler. However, the deal does not include Hulu’s main video-streaming service.
FuboTV and Disney’s Game-Changing Deal
On January 7, FuboTV announced a merger with Disney Walt. and Hulu + Live TV, which will be the second largest subscriber-based TV service provider in North America. Post merger, Fubo, and Hulu will remain focused on separate areas. Fubo will telecast sports and news while Hulu+Live TV will remain focused on reality shows as a replacement for traditional
Disney has also made a licensing deal with Fubo to create a sports-focused service that will include Disney’s networks like ABC and ESPN. Experts believe this move is part of Disney’s strategy to shift away from pay TV and focus more on its streaming goals.
FuboTV and Disney Settle Litigation
The merger has resolved the ongoing litigation between FuboTV and Disney, Warner Bros, and Fox Corp regarding their future sports plan, Venu. At that time, Fubo accused the company of anti-competitive practices including bundling lesser-watched networks to secure rights to live sports.
The accused companies will pay $220 million to Fubo and Disne has committed to pay off the loan of $145 million for the company by 2026. A U.S. District Court had previously blocked the launch of Venu, but the merger now resolves this issue.
FuboTV Share Prices Soar After Deal
Wall Street reacted positively to the news, with Fubo share prices jumping 260% after the announcement, while Disney saw a small increase. This spike marks a significant moment for FuboTV, which has been highly volatile over the past year, reflected in its high beta of 1.78. Looking at the 1-year change, FuboTV’s stock has dropped by 50.85%. However, the recent rise to a 52-week high suggests a possible shift in investor sentiment as the market responds to the company’s strategic moves and industry trends.
