FuboTV Inc. (FUBO) is experiencing a significant surge in its stock price following the announcement of a merger with Disney's Hulu+ Live TV. This strategic move is set to enhance FuboTV's competitive edge in the paid TV market by combining the subscriber bases of both services, totaling over 6.2 million. Disney will hold a 70% ownership stake in the merged entity, while FuboTV shareholders will retain the remaining 30%. The merger is expected to make FuboTV immediately cash flow positive, with projections of EBITDA between $325 million and $375 million post-merger. Additionally, the deal resolves ongoing litigation with Disney and ESPN, further boosting investor confidence.
On Reddit, discussions are buzzing with excitement over the merger. One user on the r/Shortsqueeze subreddit noted, "Disney will own 70% of the new FUBO Hulu merged company. The Mouse family does not like losing money, so why would they make this deal after buying out Hulu for billions?" Another user expressed optimism, stating, "FUBO going for an epic squeeze today," highlighting the potential for a short squeeze as shorts scramble to cover their positions. The sentiment is echoed across various subreddits, with users eyeing price targets as high as $20-$22, reflecting the bullish outlook among retail investors.
FuboTV's stock is currently trading at $5.87, marking a 16.01% increase from the previous close of $5.06. The stock opened at $5.43 and has reached a high of $6.35 in today's trading session. Despite being just 30 minutes into the trading day, the stock has already seen an extraordinary volume of 156,897,900 shares traded, representing a staggering 716.09% of the average daily volume of 21,910,240 shares, indicating intense trading activity this morning.