Disney's streaming partner Fubo delivers almost 100% return in 2025

Small-cap streaming service FuboTV delivered a nearly 100% return to investors last year, reports the Motley Fool. Despite the stock’s current volatility, its growth potential is far from exhausted: The company has thwarted the rise of a potential rival and secured a lucrative deal with Disney to merge their streaming services.

FuboTV delivered an almost 100% return to investors in 2025, according to the Motley Fool. Since the beginning of the year, the stock has more than doubled to $3.10 per share (as of the close yesterday, March 20). In premarket trading today, it has dipped about 0.7%. Fubo’s market capitalization on the New York Stock Exchange now stands at just over $1 billion.

The stock soared in January after the company announced the deal with Disney to merge the Hulu + Live TV platform with Fubo’s business. On January 6, the day the deal was announced, Fubo jumped about 250% to $5.06 per share before gaining another 8% the next day. However, the gains could not be sustained. Over the last 30 days, the stock has lost 20%.

The Motley Fool believes the merger with Disney’s service could triple Fubo’s market capitalization, noting that while Disney will receive a 70% stake in the combined company, it will also contribute 73% of the subscribers and more than 75% of the revenue and provide strong marketing support. As a result, the synergies of the combination might help it become the second-largest streaming platform in the U.S. after YouTube TV.

Furthermore, the partnership with Disney makes Fubo a safer investment, the Motley Fool argues.

Fubo also expects to receive a $220 million cash settlement from Venu Sports, an “ambitious partnership” between ESPN parent Disney and two other media giants, FOX and Warner Bros. Discovery, as the Motley Fool points out. Fubo had secured a legal injunction to block the launch of Venu on anticompetitive grounds but later agreed to drop the lawsuit in exchange for a settlement.

“A funny thing happened after that: Within days, Venu Sports came undone on its own,” the Motley Fool adds.

FuboTV was founded in 2015 by David Gandler, Sung Ho Choi, and Alberto Horihuela to tap into demand in the U.S. for overseas soccer leagues, according to Forbes. In 2019, the publication included the company in its list of promising startups with good chances to reach a $1 billion valuation.

In 2020, Fubo went public after merging with Facebank, a developer of images for the metaverse. That same year, it listed 18.3 million shares on the New York Stock Exchange—more than initially planned—at $10 per share, the midpoint of the price range. Since then, its market capitalization has dropped by almost 70%.

Initially, FuboTV offered live streams of soccer channels such as GolTV and Benfica TV before expanding its coverage and sports offerings through deals with beIN Sports and Univision, Forbes notes.

The company now operates worldwide, but its primary business is concentrated in North America (the U.S. and Canada). For the full-year 2024, it reported a 19% year-over-year increase in revenue to a record $1.59 billion and a “significant improvement” in free cash flow for the second consecutive year — by more than $100 million to $104 million.

The Motley Fool points out that in 2024, Fubo generated positive free cash flow for the first time. “Today's view of Fubo in three years is a company firmly in the black, with compounded annual revenue growth between 10% and 11% in that time,” the stock news and analytics site concludes.

According to MarketWatch, out of the eight analysts who cover Fubo, four rate it a “hold,” three a “buy,” and one a “sell.” Their average target price of $4.85 per share implies upside of almost 62% versus the last closing price.