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Source:issaro prakalung, Shutterstock
Summary
- FuboTV stocks jump 17 percent after securing streaming rights to World Cup qualifying matches.
- The deal gives the company streaming rights to 70 matches, including the World Cup qualifiers.
- The stock (NYSE:FUBO) has more than doubled in price over the past six months.
The stocks of FuboTV Inc. (NYSE:FUBO) surged more than 17 percent in early trade on Friday, April 9, a day after it announced having acquired exclusive live streaming rights to the qualifying matches of the Qatar World Cup 2022.
FUBO was priced at US$24.41 at 11.37 am ET on Friday, which was an increase of 17.923 percent from the previous close. The stock has more than doubled in price over the past six months.
Friday’s rally has caught many Wall Street investors by surprise, especially when it appeared to be losing steam in the past two days after a damning lawsuit against the company over alleged false reporting.
FuboTV is popular for live streaming of sports events, and various news, and entertainment programs. Its dynamic streaming platform allows viewers to access content through multiple channels, including SmartTVs, smartphones, desktops as well as tablets, and other devices. Subscribers can access tens and thousands of sports events once signed up for the service.
FuboTV has a market cap of more than US$3.4 billion.
Pic Credit: Pixabay.
FuboTV’s World Cup Rights
FuboTV said on Thursday, April 8, that it has secured special rights for live streaming of the qualifying matches of the South American Football Confederation (SAFC) as part of the Qatar World Cup 2022. The deal gives the company streaming rights to 70 matches, including the World Cup qualifiers.
The matches were being scheduled from June onwards and they may continue well into early 2022. The agreement also gives them the rights for the highlight matches and re-air, to be reported in English and Spanish. FuboTV plans to bolster the World Cup coverage by hosting special shows for each of the match segments: pre, half-time, and post-match shows.
According to FuboTV co-founder and CEO David Gandler, the company’s World Cup deal offers a unique opportunity to its users to access a wide variety of premium content on its platform. Also, football fans will be able to experience a piece of the real action from the South American soccer world much before the World Cup event kicks off, Mr. Gandler told reporters. The FuboTV statement further notes that the company will have telecast rights for at least 10 South American soccer teams.
Lawsuit Controversy
A group of investors has filed a lawsuit against FuboTV over its alleged false or misleading statements concerning the purchase of FUBO shares between March 23, 2020, and January 4, 2021. The case, filed in a New York District court, alleges violations of the US Securities Exchange Act. The petitioners noted in the lawsuit that the defendants made misleading statements and failed to clearly disclose the growth and profitability aspects to investors. They further alleged that Fubo did not adequately reveal that its products could be subject to cost escalation.
