Buy FuboTV Now or Wait Until the Disney Deal Is Done?

Company Overview - FuboTV aims to aggregate premium sports, news, and entertainment content through a single app, positioning itself as a sports-first cable TV replacement in the U.S. market [1] - Disney is a major media player with significant content franchises, and Hulu was one of its early streaming efforts [4] Merger Details - FuboTV announced a merger with Disney's Hulu, with Disney retaining a 70% stake in the combined entity, which may primarily benefit Disney [4] - The merger could lead to FuboTV becoming heavily reliant on Disney, potentially facing high content costs that could limit profitability [5] Current Performance - FuboTV reported GAAP earnings of $0.55 per share in Q1 2025, but adjusted for one-time items, it lost $0.02 per share, indicating ongoing financial struggles [6] - The company experienced a year-over-year decline in its subscriber base during the first quarter, suggesting it is not entering the merger with strong momentum [6][7] Challenges and Risks - The complexity of integrating Hulu's larger streaming business could pose execution challenges for FuboTV, especially given its recent subscriber issues [7] - There are concerns that Disney's significant ownership stake may prioritize its interests over those of other shareholders, potentially leading to negative outcomes for FuboTV [8] Investment Considerations - The merger presents both potential benefits and risks, with the possibility of FuboTV gaining subscribers from Hulu but also facing challenges due to its current performance [8] - Given the recent stock price increase, it may be prudent for investors to wait and assess FuboTV's performance post-merger before making investment decisions [9]