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.