Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Broadcasting & Cable
Broadcasting & Cable
Business
Jon Lafayette

Fubo Stock Plunges 25% After Big Media Companies Announce New Sports Venture

Fubo rebranding spot.

The announcement that ESPN, Fox and Warner Bros Discovery were forming a new sports streaming venture sent shares of sports-oriented Fubo spiraling downward.

Fubo stock was down 25% to $1.88 a share in Wednesday morning trading.

“This latest development acts as further confirmation of heightened competition, which may hinder Fubo's growth, churn, timeline to profitability, and pricing power, especially with Fubo’s variable cost structure,” said a report by Roth MKM analysts Darren Aftahi and Dillon Heslin, which was obtained by Seeking Alpha.

Roth MKM lowered its target price for Fubo shares to $2 from $3.25

Fubo had no comment.

Also Read: New Sports Venture Not Open To Additional Partners: Lachlan Murdoch

Cantor Fitzgerald analysts Brett Knoblauch and Thomas Shinske were also pessimistic about Fubo in light of the new rival.

“Optically and competitively, this is a negative development for Fubo, which prides itself on being the place to stream live sports,” the analysts said in another report obtained by Seeking Alpha. “Fubo currently provides access to the majority of the Disney and Fox family of networks (it does not have WBD networks), meaning this new joint venture could effectively replicate much of what Fubo has to offer.”

Fubo lost $83.8 million in the third quarter despite a 43% increase in revenues to $420.9 million. 

The company had 1.477 million paid subscribers and was looking to produce positive cash flow in 2025.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.