Fubotv Stock Rises 250% In Single Trading Session
Date
1/7/2025 10:13:20 AM
(MENAFN- Baystreet)
The stock of Fubotv (FUBO) rose an astonishing 250% in a single trading session on news that the company has struck a content deal with the Walt Disney Co. (DIS).
Disney will combine its Hulu+ Live TV service with Fubotv, merging two internet TV bundles, the companies announced jointly.
Disney will become majority owner of Fubotv with a 70% ownership stake. Fubotv stockholders will own the remaining 30% of the company. The deal is expected to close within 18 months.
Both Hulu+ Live TV and Fubotv are streaming services that mimic traditional cable TV bundles, offering linear TV networks. Together the streaming services have 6.2 million subscribers.
Both services will still be available separately to consumers after the deal closes.
Hulu+ Live TV can be streamed through the Hulu app, as well as through a Disney bundle that also includes Disney+ and ESPN+.
The deal doesn't include the Hulu streaming service that's known for creating original programs such as“Only Murders in the Building” and“The Handmaid's Tale.”
Fubotv has long focused on offering sports and news content, while Hulu+ Live TV is known for its entertainment shows.
Fubotv is expected to become immediately cash flow positive following the deal closing. If the deal falls through for any reason, Fubotv will receive a $130 million U.S. termination fee.
The new company will be led by Fubotv's management team, while its board of directors will be majority appointed by Disney.
Fubotv stock, which closed at only $1.44 U.S. per share on Jan. 3, surged 250% on news of the deal to trade at $5.06 U.S. per share.
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