Fubo Faces Challenges with Q4 Result and Disney Acquisition

Fubo, the pay-TV provider, reported mixed fourth-quarter results with an 8% revenue increase to $433.8 million and a narrowing net loss per share to 2 cents, though still missing consensus revenue estimates. Subscriber base reached nearly 1.7 million, marking a 4% yearly growth but projected to dip in Q1 2024 due to a dispute with TelevisaUnivision. However, investors reacted negatively, sending Fubo's stock down 20%. One notable highlight is Disney's pending acquisition of a majority stake in Fubo, expected to close by the first half of 2026, which aims to solidify their position as the No. 6 pay-TV operator in the U.S. The acquisition settled Fubo's antitrust lawsuit against Disney, Fox, and Warner Bros. over the Venu Sports service. Fubo and Disney's Hulu will operate as separate entities post-acquisition. CEO David Gandler emphasized harmonious relationships with Disney regarding carriage and distribution deals, while promising updates on the merger’s progress. Fubo is also planning to launch a Sports & Broadcasting package later this year, targeting sports enthusiasts.