is considering offering sports betting but the live TV streaming platform hasn’t fully worked out its strategy, CEO David Gandler told Barron’s.
FuboTV (ticker: FUBO) provides access to more than 50,000 sporting events from leagues including the NFL, NBA, NHL and the MLB. Sports betting is currently not available on fuboTV, a spokesperson said.
“We think we can enhance the viewing experience with wagering,” Gandler told Barron’s. “We don’t have a strategy fleshed out but it’s an area of increasing interest.” FuboTV is “looking at its options,” Gandler added.
The New York-based company receives “constant interest” from parties in the sports-betting space from an advertising perspective, Gandler said. The CEO declined to disclose who fuboTV is talking to but noted the company already has a relationship, of over one year, with a provider.
In May 2019, fuboTV struck a deal with FanDuel Group, making it the exclusive sportsbook, online casino, horse racing and daily fantasy sports partner of the streaming service. FanDuel, a gaming company, also became the exclusive advertiser on fuboTV for the categories. The deal allowed FanDuel data to be integrated into fuboTV, TechCrunch said at the time.
FanDuel could not immediately be reached for comment.
Gandler spoke to Barron’s from the floor of the New York Stock Exchange. On Thursday, shares of fuboTV were uplisted to the New York Stock Exchange. Fubo had previously traded on the OTCQB Venture Market. When asked why the company made the switch, Gandler said: “This is the first time institutional investors can buy fuboTV [stock]. There is no volume on the OTC so you can’t buy stock.”
With the listing, fuboTV raised $183 million late Wednesday after boosting the size of its underwritten public offering, a statement said. FuboTV ended up selling 18.3 million shares, up from 15 million, at $10 each. Underwriters on the deal include Evercore ISI.
The listing comes months since fuboTV merged in April with Facebank Group, which develops “hyper realistic digital humans” of celebrities and consumers for entertainment and live events. Facebank is the former Pulse Evolution Group, which was behind the digital Tupac Shakur at the Coachella Valley Music Festival in 2012. It’s technology was also used in the movie The Curious Case of Benjamin Button.
“Everything is going great. It’s exactly how we wanted it to play out,” Gandler said of the merger.
Founded in 2015, FuboTV is not profitable. The company reported $148.5 million in pro forma combined net losses for the six months ended June 30 on $95.2 million in revenue, a prospectus said. “That is what happens when a company is new,” Gandler said of Fubo’s unprofitable status. “We’re five years old.”
In September, the start of the NFL and fall sports season spurred FuboTV to raise its guidance. The company expects it will have 370,00 to 380,000 paid subscribers in the third quarter, a 28% year over year jump. “The tailwinds are kicking in nicely,” Gandler said.
Write to Luisa Beltran at luisa.beltr[email protected]