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Posted On: 09/07/2025 3:49:45 PM
Post# of 108691
$FUBO $4.00 - Article posted on Reddit about 2 months ago following the last earnings call. Language regarding the approval by the doj was very interesting. Language listed in number 2. below.
There is a subtle but increasingly compelling case forming for FuboTV (NASDAQ: FUBO), especially in light of recent developments surrounding its pending merger with Hulu + Live TV and observable positioning in the options market.
Here is a breakdown of why the next few weeks may matter, and why the recent price action may just be the beginning.
The Disney–Hulu Acquisition Is Finalizing (And That Matters)
Disney is reportedly finalizing its full acquisition of Hulu as early as tomorrow, completing its buyout of Comcast’s 33% stake. This is not just a standalone corporate action, but the precondition for the Department of Justice (DOJ) to evaluate and potentially approve the pending Hulu Live TV and FuboTV merger.
Fubo and Disney previously announced that Hulu + Live TV will be merged into FuboTV, with Disney receiving a 70% ownership stake in the combined entity. The integration would make this the second-largest live TV streaming service in North America, behind YouTube TV.
The implication is significant. Once Disney fully owns Hulu, it effectively clears the legal and regulatory path for DOJ review, and potentially approval, of the merger. In other words, a major catalyst may now be imminent.
2. Language Shift in the Last Earnings Call (June 2025)
In the most recent earnings call, CEO David Gandler made a subtle but notable change in language.
Where previous commentary referenced “working with investigators” or “engaging with regulators,” this time he stated that the company cannot comment further during the approval process.
This marks the first instance where the company has explicitly referred to an “approval” process, indicating a formal regulatory review. It suggests the deal is no longer in exploratory stages, but rather in a confidential approval phase, likely governed by DOJ protocols.
This change may seem minor, but it reflects a material progression in the deal’s lifecycle. It also coincides with growing institutional and derivative market activity.
3. Options Market Activity Is Accelerating
In the past week, open interest in call options has risen sharply, particularly in near-dated July and August strikes. The call-to-put ratio has skewed bullish, indicating that traders are increasingly positioning for upward price movement.
Key observations include: • Notable open interest in the $4.00 and $5.00 calls. • Block trades that appear institutional, rather than retail-driven. • Rising implied volatility, suggesting anticipation of a near-term event (but not panic buying).
With short interest currently around 12.7% of float, any material news (such as DOJ approval) could create a forced covering scenario and enhance momentum.
4. Underlying Business Remains Operationally Strong
While deal speculation is dominant, it’s important to note that FuboTV’s core business is stabilizing.
The company recently secured a $220 million cash infusion, along with a $145 million term loan from Disney. These funds strengthen the balance sheet and provide operational flexibility.
Management continues to optimize margins through content cost management, bundling strategies, and a disciplined advertising approach. Revenue remains on a positive growth trajectory, and prior guidance remains intact.
With the Hulu merger, Fubo would instantly expand its subscriber base, benefit from economies of scale, and accelerate its timeline to profitability.
5. Sentiment and Valuation May Shift Quickly
The stock is up approximately 20% in the past month, yet it remains well below its pre-merger valuation levels. The market appears hesitant, likely waiting for confirmation of regulatory approval.
If and when the DOJ grants that approval, sentiment could shift dramatically. The market could begin to reprice Fubo not as a speculative small-cap, but as a key player in a Disney-powered streaming ecosystem with operational leverage and a clear growth path.
Final Thoughts
There appears to be a quiet but material alignment of signals: • Disney’s final acquisition of Hulu (a merger prerequisite) is expected imminently. • Company leadership has shifted its language from “engagement” to “approval.” • The options market reflects growing bullish sentiment. • Short interest remains elevated enough to fuel a strong move on news.
If management executes on integration and margin strategy, and if DOJ approval follows shortly the stock may re-rate significantly in a short period of time.
While risks remain, particularly around integration complexity and content costs, the risk-to-reward profile is increasingly asymmetric in favor of a positive surprise.
There is a subtle but increasingly compelling case forming for FuboTV (NASDAQ: FUBO), especially in light of recent developments surrounding its pending merger with Hulu + Live TV and observable positioning in the options market.
Here is a breakdown of why the next few weeks may matter, and why the recent price action may just be the beginning.
The Disney–Hulu Acquisition Is Finalizing (And That Matters)
Disney is reportedly finalizing its full acquisition of Hulu as early as tomorrow, completing its buyout of Comcast’s 33% stake. This is not just a standalone corporate action, but the precondition for the Department of Justice (DOJ) to evaluate and potentially approve the pending Hulu Live TV and FuboTV merger.
Fubo and Disney previously announced that Hulu + Live TV will be merged into FuboTV, with Disney receiving a 70% ownership stake in the combined entity. The integration would make this the second-largest live TV streaming service in North America, behind YouTube TV.
The implication is significant. Once Disney fully owns Hulu, it effectively clears the legal and regulatory path for DOJ review, and potentially approval, of the merger. In other words, a major catalyst may now be imminent.
2. Language Shift in the Last Earnings Call (June 2025)
In the most recent earnings call, CEO David Gandler made a subtle but notable change in language.
Where previous commentary referenced “working with investigators” or “engaging with regulators,” this time he stated that the company cannot comment further during the approval process.
This marks the first instance where the company has explicitly referred to an “approval” process, indicating a formal regulatory review. It suggests the deal is no longer in exploratory stages, but rather in a confidential approval phase, likely governed by DOJ protocols.
This change may seem minor, but it reflects a material progression in the deal’s lifecycle. It also coincides with growing institutional and derivative market activity.
3. Options Market Activity Is Accelerating
In the past week, open interest in call options has risen sharply, particularly in near-dated July and August strikes. The call-to-put ratio has skewed bullish, indicating that traders are increasingly positioning for upward price movement.
Key observations include: • Notable open interest in the $4.00 and $5.00 calls. • Block trades that appear institutional, rather than retail-driven. • Rising implied volatility, suggesting anticipation of a near-term event (but not panic buying).
With short interest currently around 12.7% of float, any material news (such as DOJ approval) could create a forced covering scenario and enhance momentum.
4. Underlying Business Remains Operationally Strong
While deal speculation is dominant, it’s important to note that FuboTV’s core business is stabilizing.
The company recently secured a $220 million cash infusion, along with a $145 million term loan from Disney. These funds strengthen the balance sheet and provide operational flexibility.
Management continues to optimize margins through content cost management, bundling strategies, and a disciplined advertising approach. Revenue remains on a positive growth trajectory, and prior guidance remains intact.
With the Hulu merger, Fubo would instantly expand its subscriber base, benefit from economies of scale, and accelerate its timeline to profitability.
5. Sentiment and Valuation May Shift Quickly
The stock is up approximately 20% in the past month, yet it remains well below its pre-merger valuation levels. The market appears hesitant, likely waiting for confirmation of regulatory approval.
If and when the DOJ grants that approval, sentiment could shift dramatically. The market could begin to reprice Fubo not as a speculative small-cap, but as a key player in a Disney-powered streaming ecosystem with operational leverage and a clear growth path.
Final Thoughts
There appears to be a quiet but material alignment of signals: • Disney’s final acquisition of Hulu (a merger prerequisite) is expected imminently. • Company leadership has shifted its language from “engagement” to “approval.” • The options market reflects growing bullish sentiment. • Short interest remains elevated enough to fuel a strong move on news.
If management executes on integration and margin strategy, and if DOJ approval follows shortly the stock may re-rate significantly in a short period of time.
While risks remain, particularly around integration complexity and content costs, the risk-to-reward profile is increasingly asymmetric in favor of a positive surprise.
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