fuboTV Inc. (FUBO) saw its shares soar 24.7% in pre-market trading on Tuesday, following Monday's massive rally. The stock movement was fueled by the company's transformative deal with Walt Disney Co. to merge their live TV businesses and recent analyst upgrades.
On Monday, fuboTV and Disney announced a landmark agreement to combine fuboTV's sports streaming platform with Disney's Hulu + Live TV service. The deal will create the second-largest internet pay-TV provider in North America, with around 6.2 million subscribers and $6 billion in revenue. Disney will take a 70% majority stake in the resulting company, which will operate under the fuboTV name and be led by fuboTV CEO David Gandler.
As part of the merger, fuboTV agreed to settle its litigation against Venu Sports, a rival sports streaming venture formed by Disney, Fox Corp, and Warner Bros Discovery. The media companies will pay fuboTV $220 million in cash and provide a $145 million term loan in 2026.
Analysts were largely positive on the deal, with Wedbush raising its price target on fuboTV to $6.40 from $3 and keeping an Outperform rating. Roth MKM also raised its price target to $4.75 from $2.00. Several analysts noted that the deal resolves fuboTV's balance sheet challenges and provides the business with more scale and ability to offer a sports-focused streaming package.
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