Fubo, Still Burning Through Millions in Cash, Just Bought Itself Some More Time




, ,

Live streaming service Fubo has the daunting task of balancing the momentum from a growing subscriber and revenue base with continued massive losses and a mountain of debt. The company just got a little breathing room to operate.

Fubo on Tuesday said that it had struck a deal with one if its key debt holders to exchange $205.8 million in convertible senior notes that were due in 2026 for $177.5 million in new debt now due in 2029. The move reduced the company’s total debt by $28.3 million. As of the third quarter of last year, Fubo reported total liabilities of $887 million.

The move relieves a bit of the pressure on the company, which has historically struggled to turn a profit on each customer due to the high cost of acquiring them and to pay for the myriad of its sports-centric content in its live programming lineup. While the company still posted a net loss of $105.8 million in the third quarter, its revenue growth and subscriber additions exceeded expectations, causing it to raise its full-year guidance.

“Today’s Exchange represents continued proactive management of Fubo’s capital structure and improves the flexibility of our balance sheet,” Fubo co-founder and CEO David Gandler said in the announcement of the debt exchange.

As of the third quarter, Fubo boasted 1.5 million subscribers — a vast majority in North America.

While the company has started to see momentum, its share price still reflects the uncertainty around the business. On Wednesday, shares hovered below $3, a far cry from its peak of $42.25 set in January 2021.

Disclaimer: To address the growing use of ad blockers we now use affiliate links to sites like http://Amazon.com, streaming services, and others. Affiliate links help sites like Cord Cutters News, stay open. Affiliate links cost you nothing but help me support my family. We do not allow paid reviews on this site. As an Amazon Associate I earn from qualifying purchases.

Subscribe to Our Newsletter

* indicates required

Please select all the ways you would like to hear from :

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp’s privacy practices here.