FuboTV ended up raising more than first expected in its initial public offering (IPO), which brought in $183 million for the live streaming television service.
The size of the offering has been increased from the previously announced 15,000,000 shares to 18,300,000 shares of common stock at a price to the public of $10 per share. According to Reuters, the IPO valued fuboTV at approximately $620 million.
The company said the offering is expected to close next week. FuboTV has also granted the underwriters a 30-day option to purchase up to an additional 2,745,000 shares of common stock at the public offering price.
Starting today, fuboTV has been approved for listing on the New York Stock Exchange under the symbol “FUBO.”
FuboTV competes with larger virtual MVPDs including Sling TV, YouTube TV, Philo, Hulu + Live TV and AT&T TV Now. However, the service recently raised its subscriber growth forecast for the third quarter thanks to a bump for the 2020 NFL season. FuboTV now expects to end the current quarter with 370,000 to 380,000 subscribers, a 28% increase year over year and up from the 340,000-350,000 total subscriptions it previously predicted.
“The current quarter has been very strong for fuboTV with double digit revenue and subscription growth year-over-year as well as improvement in retention - all achieved during the ongoing pandemic,” said fuboTV CEO David Gandler in a statement. “The start of the NFL season and the expectation of a heavy fall sports calendar is driving engagement, ad revenue and higher CPMs, giving us additional confidence to forecast a strong third quarter for fuboTV. Looking ahead, we are focused on driving revenue growth by increasing subscription and ad sales and improving engagement.”
FuboTV recently provided subscriber and revenue forecasts for the fourth quarter. Revenues for the fourth quarter are expected to be $68 million to $75 million, up 68% year over year, and the company expects to end the year with 410,000-420,000 paid subscribers.