Disney Continues to Hold a Stake in FuboTV-Owner FaceBank Group

Disney (NYSE:DIS) and FaceBank Group (OTC:FUBO) revealed in a regulatory filing late Monday that Disney continues to hold a stake in FaceBank, the parent company of live-TV streaming platform FuboTV, one it acquired with the acquisition of 20th Century Fox. Disney owns convertible preferred stock worth 6.63 million shares of FaceBank Group’s common stock, which would represent a nearly 5% voting stake in the company.

That stake will be fluid, however, as FaceBank also filed a form S-1 with the Securities and Exchange Commission (SEC) yesterday, detailing plans for a secondary stock offering. The company listed $100 million as the amount it hopes to raise, though this figure is typically a placeholder that is updated in a successive filing.

The move comes as FaceBank finally released its 2019 year-end report and its first-quarter results. The company had received an extension of time for the filings, as well as for its second-quarter report, due to the COVID-19 pandemic.

FaceBank generated first-quarter revenue of $7.3 million, compared with no revenue in the prior-year quarter, but tripled its operating loss to more than $18.1 million. This resulted in a net loss of more than $55.6 million and a loss per share of $1.83, growing nearly six-fold from its $0.27 loss per share in the year-ago quarter.

The company also has a debt-laden balance sheet, with just $81,000 in cash and more than $55 million in long-term debt, so it’s little surprise FaceBank is working to raise capital.

Disney’s continuing stake in FuboTV comes as the company is well on its way to becoming a powerhouse in streaming, adding might to its multi-media empire. During the conference call to discuss its fiscal third-quarter earnings, Disney CEO Bob Chapek said Disney+ had surpassed 60.5 million paid subscribers, a goal the company didn’t expect to reach until 2024.

10 Top Stocks we like better than The Walt Disney Company

When investing geniuses David and Tom Gardner have a stock tip, it can literally pay to listen. After all, they have consistently beaten the market for over 25 years!

David and Tom just revealed what they believe are their ten Top Stocks for investors to buy right now… and The Walt Disney Company wasn’t one of them! That’s right — they think these 10 stocks may be even better buys. The Motley Fool

Share this:

Leave a Reply

Your email address will not be published. Required fields are marked *

51 + = 59

Stay Updated on Broadcast and CableSat.
Receive our Daily Newsletter.