FuboTV stock drops on ESPN, Fox, Warner Bros. joint venture
Shares of fuboTV (FUBO) are tanking as Disney's ESPN (DIS), Fox (FOX, FOXA), and Warner Bros. Discovery (WBD) announce a joint venture, bringing the media giants together to launch a new sports streaming service that plans on debuting in the fall of 2024.
Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the competitive pressures hitting fuboTV's stock.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
Video Transcript
JOSH LIPTON: Fine. Let's get a check on shares of Fubo here. Now, they are tanking today following that news that ESPN, Fox, Warner Brothers, have reached an agreement to team up and create a sports streaming platform. So fuboTV sliding in today's trade, Julie, and it's coming after ESPN, Fox, Warner Brothers, Discovery, they announced OK, a new sports streaming service. Analysts at Cantor, by the way, saying optically and competitively this is a negative development for Fubo, which of course, prides itself on being the kind of place to stream live sports.
JULIE HYMAN: And, exactly. And if there's this big competitor to it, I mean, cost as we have been bandying about in the newsroom today, is going to be important for this new offering. There have been several reports that put the price at around $40 or even more. So I actually, it occurs to me, I don't know how much Fubo costs, so I don't know how it would stack up.
JOSH LIPTON: No, either way though. I mean, you're right, there's a lot of questions here. Who's going to run the service, the price. But if the price is anyway competitive with Fubo--
JULIE HYMAN: Right.
JOSH LIPTON: Then that's why analysts who cover the game are saying if it's competitive any way, what does that mean for churn, what does that mean for marketing costs.
JULIE HYMAN: Yeah, exactly. By the way, the company reports earnings at the end of the month. So we'll be getting more information on how it's doing. Obviously there won't be an impact from this yet, but one would imagine there would have to be some commentary, and plans, to your last point, about whether they're going to have to spend more on marketing.
JOSH LIPTON: Yeah, that call just got a lot more interesting.
JULIE HYMAN: Yeah.
