FuboTV Inc. (FUBO) is experiencing a decline in its stock price today, which may be attributed to ongoing concerns about the company's merger with Disney's Hulu + Live TV. The legal scrutiny surrounding the merger terms, particularly the fairness of the agreement for FuboTV shareholders, has raised investor apprehension. The deal involves Disney acquiring a 70% ownership stake, which could lead to significant dilution of existing shares. This potential dilution is a point of contention among investors, as it may impact the value of their holdings.
On Reddit, discussions reflect a mix of skepticism and cautious optimism regarding the merger. Some users are concerned about the dilution, with one noting, "They estimate that the value of Hulu + is greater than FUBO so they are going to create another 700 million shares to add to the 300 million that exist." Others remain hopeful about the long-term benefits of the deal, suggesting that FuboTV's access to Hulu+'s customer base and product offerings could enhance its market position. However, the uncertainty surrounding the merger's final terms and its impact on FuboTV's financials continues to weigh on investor sentiment.
FuboTV's stock is currently trading at $3.85, down 3.51% from the previous close of $3.99. The stock opened at $4.07 and has fluctuated between a high of $4.30 and a low of $3.78 so far today. Despite being just 30 minutes into the trading day, the stock has already seen a volume of 33,922,267 shares, representing 94.17% of the average daily volume of 36,022,016 shares, indicating active trading this morning.