Shares of FuboTV (FUBO -4.18%) soared in the first half of the year, as the company agreed to a merger with Walt Disney (DIS -1.40%). According to data from S&P Global Market Intelligence, the stock finished the first half of 2025 up 206%.
The stock’s gains came entirely from news of the merger, as the Disney deal, which will merge Fubo with Hulu + Live TV, values the sports streaming stock significantly higher than what it was trading for before the news.
However, there was also other news out of Fubo, and the stock did pull back modestly following the merger announcement in January.
As you can see from the chart, the stock soared on the announcement at the beginning of the year, and then drifted lower before rebounding with the broad market in May and June.
Fubo makes a deal
The big news out on Fubo this year was, of course, the merger with Hulu + Live TV.
According to the terms of the deal, Disney will own 70% of the combined company, which will continue trading under the Fubo ticker. The deal also resolved outstanding litigation between the two companies at the time, which was related to the Venu Sports joint venture that was later disbanded.
The stock tripled on the news, because the move will triple Fubo’s viewing audience, and Fubo will also receive a $220 million payment as a result of the agreement.
While the move does make Fubo a significantly larger company, it might not be the simple value add that investors hope it will be.
Fubo continued to be unprofitable into 2024, reporting an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss narrowed from $201 million to $86.1 million, while revenue grew 8% to $431.8 million.
In the first quarter, meanwhile, revenue rose 3.5% to $407.9 million, and sees revenue declining in the second quarter.
Additionally, the Department of Justice announced an investigation into the deal on antitrust grounds in April.
Image source: Getty Images.
What’s next for Fubo?
Investors are still betting that the deal will go through, as the stock recovered strongly through May and June. The merger does appear to be the best outcome for Fubo, and Disney’s reach, expertise, and experience with ESPN could help drive its success in the meantime.
However, even if the deal stays on track, investors should expect the stock to be volatile, as the business is still losing money.
Jeremy Bowman has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney and fuboTV. The Motley Fool has a disclosure policy.
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