Key Takeaways
- FuboTV implemented a 1-for-12 reverse stock split effective March 24, following board authorization on March 23
- Shares declined by as much as 10.6% during trading before partially recovering to close down approximately 3.6%
- Following the merger with Hulu + Live TV, Disney controls a 70% ownership stake while existing FuboTV shareholders retain 30%
- The newly merged entity generated $6.2 billion in pro forma revenue across the last twelve months
- Analyst sentiment remains mixed: Seaport Global upgraded to Buy with a $3 target, while Needham maintained its Buy rating but reduced its target from $4.25 to $3.00
On Monday, March 23, FuboTV (FUBO) enacted a 1-for-12 reverse stock split, with the price adjustment becoming effective when markets opened on Tuesday, March 24. Shares tumbled by as much as 10.6% during the trading session before recovering some ground.
The reverse consolidation was initially disclosed during the company’s February earnings presentation. Management had received board authorization to implement a ratio ranging from 1-for-8 to 1-for-12, ultimately selecting the maximum ratio.
The company submitted a Certificate of Amendment to Delaware’s Secretary of State on Monday to formalize the action. Importantly, the move required written approval from Hulu, LLC, a significant stakeholder in the organization, which was successfully obtained.
Reverse stock splits typically carry negative connotations among market participants. Companies often deploy this strategy to maintain compliance with stock exchange listing requirements and to appeal to institutional investors that avoid securities trading beneath specific price thresholds.
FuboTV’s market capitalization has contracted to approximately $360 million after months of sustained pressure. This valuation appears modest for an enterprise connected to a streaming operation producing $6.2 billion in pro forma revenue over the past twelve months, accompanied by $78 million in adjusted EBITDA.
Context of the Hulu + Live TV Combination
The reverse consolidation arrives approximately five months following FuboTV’s strategic combination of its sports streaming operations with Disney’s Hulu + Live TV service. Under the transaction terms, Disney secured a 70% ownership position in the unified company, with legacy FuboTV shareholders maintaining the balance of 30%.
The combined organization disclosed its inaugural quarterly performance in February. Pro forma revenue climbed 6%, exceeding Wall Street projections. Adjusted EBITDA margin expanded from 1.4% to 2.5%, demonstrating operational improvement.
Subscriber metrics, conversely, showed concerning trends. The North American subscriber base contracted from 6.3 million to 6.2 million. International subscriptions similarly decreased from 362,000 to 335,000.
Wall Street Perspectives
Seaport Global Securities elevated its rating on FUBO from Neutral to Buy after reviewing the initial post-combination quarterly report, establishing a $3.00 price objective.
Needham preserved its Buy recommendation but lowered its price objective from $4.25 to $3.00, identifying the anticipated loss of NBC sports programming in 2026 as a potential challenge.
FuboTV’s Q1 2026 financial performance exceeded expectations significantly. The company delivered earnings per share of $0.02 compared to the anticipated loss of $0.03—representing a 166.67% positive variance. Revenue reached $1.68 billion versus consensus estimates of $390.88 million.
This substantial revenue increase reflected the first-time consolidation of Hulu + Live TV within reported figures. The company’s financial profile has transformed dramatically compared to twelve months prior.
Based on current valuations, FUBO is trading at approximately 0.2 times sales and roughly 15 times EBITDA when considering its proportional 30% ownership in the combined enterprise.
Shares were changing hands at $13.20 during Monday afternoon trading, within a 52-week trading band of $12.18 to $56.64—the upper figure reflects pre-reverse-split adjustment.
Class A common shares commenced trading on a split-adjusted basis on the New York Stock Exchange at Tuesday’s opening bell, March 24, continuing under the ticker symbol “FUBO” with an updated CUSIP identifier of 35953D401.
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