FuboTV CEO David Gandler said he bought 46,000 shares of the company’s stock for about $137,000, according to a Securities and Exchange Commission filing and a series of tweets Monday.
Also on Twitter, analyst Rich Greenfield of LightShed Partners pointed out that Gandler had sold 50,000 shares of fubo stock for $1.5 million in November.
When Gandler sold, he received $34.46 a share. When he bought, he paid $2.98 a share.
In his tweet, Gandler said “I could not be more confident in fubo’s ability to meet its goals. As a testament to my confidence, I bought 46,000 shares of $FUBO today.”
I could not be more confident in fubo's ability to meet its goals. As a testament to my confidence, I bought 46,000 shares of $FUBO today. 1/3May 9, 2022
Gandler added that other members of the fubo executive team also bought shares on the open market, including CFO John Janedis. Janedis bought 7,000 shares at $2.94 a share for a total investment of $20,580.
Last week fubo released its first quarter results, saying that it lost $140.8 million on record revenues of $243 million. It said it lost 75,000 subscribers.
In December 2020, Greenfield urged investors to sell “money losing” fuboTV. Greenfield noted that it would be difficult to make money in the virtual MVPD business, especially with little leverage against content owners.
$FUBO 💪Nov 3, 2021: Fubo Co-Founder/CEO Gandler sold 50,000 shares at $34.46 for $1.5 millionToday, he bought 46,000 shares at $2.98 for $137,000May 9, 2022
At the time, the stock traded at $44.
“There is no special sauce [for] Fubo, which can turn the fundamentally flawed MVPD/vMVPD business into a good one, especially if it lacks scale and other products to bundle,” Greenfield said.
FuboTV has been looking to move into the lucrative sports betting market.
In January, Greenfield upgraded fuboTV from sell to neutral.
"Fubo’s financial challenges could worsen in 2022 if their recent sports rights licensing deals do not drive enough incremental subs. Lastly, we believe it is highly unlikely that Fubo has access to capital going forward," Greenfield wrote.
"All that said, with Fubo stock down nearly 85% in 13 months and the company sitting on $375 million of cash, we are going to wait and see whether management abandons their sports betting 'fantasy' to reduce the cash burn in 2022 and beyond. While the company could also put itself up for sale, we believe the most likely buyers would look to poach Fubo’s subscribers post-bankruptcy, rather than buy the whole company at the current $1.4 billion valuation," Greenfield wrote.
Fubo shares closed at $2.91 on Monday, down 10.46%. ■
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.