fuboTV Stock On Track To Record Follow-on Gains After Disney Deal: Retail Goes Gaga Over ‘Game-changing’ Transaction

fuboTV, Inc. ($FUBO) shares could extend their gains as they rose in Tuesday’s premarket trading following Monday’s 251.39% jump. The premarket strength reflected optimism regarding entertainment giant Walt Disney Co. ($DIS) taking a majority stake in fuboTV and a positive analyst action.

The stock is the top-trending ticker on Stocktwits, with retail activity reaching frenzied levels.

Late Monday, Roth MKM analysts raised the price target for fuboTV stock from $2 to $4.75 and maintained a ‘Neutral rating,’ TheFly reported. Analysts at the firm attributed the upward price target adjustment to the combination of Disney’s Hulu+LiveTV with fuboTV. 

FuboTV’s team led by co-founder CEO and David Gandler, will manage the combined company, and Disney will own 70% of it.

Following the deal that would create a combined virtual multichannel video programming distributor (MVPD), fuboTV has settled all litigation with Disney and ESPN related to Venu Sports - the previously announced sports streaming platform planned by ESPN, Fox Corp. ($FOX) and Warner Bros. Discovery, Inc. ($WBD).

At the signing of the transaction. Disney, Fox, and Warner Bros. Discovery have agreed to make an aggregate cash payment of $220 million to fuboTV. Disney has also committed to a $145 million term loan to fuboTV. 

If the deal does not fructify, fuboTV will be eligible for a $130 million termination fee. 

Roth MKM said the combined company will feature enhanced economies of scale and content flexibility and help remove much of the risk around fuboTV, including litigation. The firm said it remains on the sidelines on fuboTV as it awaits a clearer signal of organic subscriber growth under the new business model.

In a presentation shared in connection with the proposed deal, fuboTV said it targets pro forma 2026 revenue of $6.5 billion to $7 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of $325 million to $375 million.

FUBO sentiment and message volume January 7, 2025, premarket as of 6:33 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward fuboTV stock turned to ‘extremely bullish’ (97/100), the highest in over a year, from ‘neutral’ a day ago. The positive sentiment is accompanied by a spike in message volume to ‘extremely high.’

A fuboTV stock watcher on the platform called the deal a “game changer” for streaming.”

Another said they would buy the stock if it drops below $5.

fuboTV stock, which lost over 60% in 2024, was up 4.15% at $5.27 in premarket trading, as of 6:33 a.m. ET.

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