The potential merger with Disney's Hulu + Live TV business could significantly impacts fuboTV's valuation, here is how -
# Combined entity subscribers: Over 6.2 million
# fuboTV's stake in merged entity: 30%
# Estimated valuation range for Hulu's Live TV business: $13.29 bil ~ $22.15 bil
# Estimated value of fuboTV's 30% stake: $3.99 bil ~ $6.65 bil
## Growth Potential
- Revenue growth: Last reported quarterly revenue of $386 mil
- Subscriber growth: Continued addition of net subscribers
- Potential profitability: Projected to be cash-flow positive immediately after merger
Given these factors, fuboTV's valuation could range from its current market cap of around $400 mil to potentially over $3.99 bil if the merger with Disney's Hulu + Live TV business is completed successfully.
This translate to the share price of $13 to $23 if the market want to fully price in the merger.
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