Key Takeaways
- On March 23, FuboTV implemented a 1-for-12 reverse stock split, with trading beginning March 24 on the adjusted basis
- Share prices dropped by as much as 10.6% during trading before stabilizing with a ~3.6% loss
- The merged streaming entity sees Disney controlling 70%, while FuboTV shareholders retain 30% ownership
- Pro forma revenue for the unified business reached $6.2 billion across the last twelve months
- Analyst sentiment remains mixed: Seaport Global raised rating to Buy at $3, while Needham held Buy but reduced target to $3.00 from $4.25
On Monday, March 23, FuboTV (FUBO) implemented a 1-for-12 reverse stock split, with the new pricing structure going live when markets opened Tuesday, March 24. Shares experienced significant volatility, plummeting up to 10.6% before partially recovering later in the session.
Management first disclosed plans for the reverse split during the company’s February earnings presentation. The board received authorization to execute a split ratio ranging from 1-for-8 to 1-for-12, ultimately selecting the maximum consolidation ratio.
The company formalized the split by submitting a Certificate of Amendment to Delaware’s Secretary of State on Monday. A crucial requirement was obtaining written consent from Hulu, LLC, which maintains a substantial ownership position in the enterprise.
Investors typically view reverse splits negatively. Companies primarily deploy this strategy to elevate per-share prices above exchange listing requirements and to meet institutional investment criteria that exclude lower-priced equities.
Following extended downward pressure, FuboTV’s market capitalization now sits near $360 million. This valuation appears notably compressed for an organization connected to streaming operations producing $6.2 billion in pro forma revenue over the past twelve months, complemented by $78 million in adjusted EBITDA.
Context of the Disney-Hulu Merger
This reverse split arrives approximately five months following FuboTV’s combination of its sports streaming operations with Disney’s Hulu + Live TV platform. The transaction structure allocated Disney a 70% controlling interest in the unified entity, while FuboTV shareholders maintained 30% ownership.
The combined operation disclosed its initial quarterly performance in February. Pro forma revenue increased 6%, surpassing Wall Street projections. Adjusted EBITDA margin demonstrated improvement, expanding from 1.4% to 2.5%.
Subscriber metrics, conversely, showed concerning trends. The North American subscriber base contracted from 6.3 million to 6.2 million. International subscribers similarly declined from 362,000 to 335,000.
Wall Street Perspectives
Following the first quarterly report after the merger, Seaport Global Securities elevated FUBO from Neutral to Buy, establishing a $3.00 price objective.
Needham maintained its Buy recommendation but reduced its price target from $4.25 to $3.00, pointing to the upcoming loss of NBC sports programming in 2026 as a potential obstacle.
FuboTV’s Q1 2026 financial results exceeded expectations significantly. The company delivered earnings per share of $0.02 compared to analyst projections of a $0.03 loss — representing a 166.67% positive variance. Revenue reached $1.68 billion, dramatically exceeding the $390.88 million consensus forecast.
This revenue figure incorporated Hulu + Live TV contributions for the first time in official reporting. The company’s financial profile has transformed substantially from its previous standalone configuration.
Based on current trading levels, FUBO stock values the business at approximately 0.2 times sales and roughly 15 times EBITDA when calculating its proportional 30% interest in the combined operation.
As of Monday afternoon, shares traded at $13.20, within a 52-week trading range of $12.18 to $56.64 — with the upper bound reflecting pre-split adjustment.
Class A common shares commenced split-adjusted trading on the New York Stock Exchange when markets opened Tuesday, March 24, continuing under the “FUBO” ticker symbol with updated CUSIP number 35953D401.
