The Motley Fool·2025-07-29 10:15Core Viewpoint - FuboTV is facing significant challenges with declining subscriber numbers and financial losses, but a recent deal with Walt Disney could provide the necessary momentum for recovery and growth [2][3][10]. Subscriber and Financial Performance - In Q1 2025, Fubo's North American paid subscriber count decreased to 1.47 million from 1.676 million in the previous quarter, while revenue slightly increased to $408 million, but free cash flow remained negative at $62 million [5]. - Internationally, Fubo's subscribers dropped by 11% year over year, with segment revenue stagnating at approximately $8.4 million, and Q2 guidance suggests revenue could decline to as low as $340 million, representing a 10% decrease [6][11]. Disney Partnership - Fubo announced a deal with Walt Disney in January, where Disney and its partners will invest $220 million and provide a $145 million term loan to acquire 70% of Fubo, creating a combined subscriber base of over 6.2 million in North America [7][8]. - This partnership is expected to provide Fubo with scale, capital, and content leverage, which are critical for competing in the live streaming market [8][9]. Future Outlook - While the Disney agreement offers potential for stability, it is not guaranteed to resolve Fubo's issues immediately, and the company must continue to improve its operations [10][12]. - Despite some operational improvements, including a $37 million year-over-year increase in adjusted EBITDA and a $9.3 million improvement in free cash flow, Fubo still faces challenges with rising content costs and subscriber retention [10][11]. - The Disney partnership is seen as essential for Fubo's path to profitability, as competing with larger tech and legacy companies requires either a substantial subscriber base or significant financial resources [11][12][13].