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Analyst Read: fuboTV acquires Vigtory

$FUBO gets a Cents Price Target increase.
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I am looking into PagerDuty ($PD), a stock that looks attractive from first glance and one that ARK is clearly bullish on, so please stay tuned for that.

This morning, fuboTV announced that it’s acquiring a sports betting and gaming company called Vigtory. 

  • They want to use this acquisition to develop a proprietary sports betting platform integrated within the fuboTV viewing experience.
  • Vigtory was founded last year by Co-CEO Sam Rattner, who has experience in developing sports betting content and technology. The other Co-CEO is Scott Butera, who was the president of interactive gaming at MGM and helped launch BetMGM. Both are joining fuboTV’s gaming division.

This gives us insight into their “online wagering” strategy.

  • Zion Market Research estimates online wagering will grow to become a $155 billion industry in 2024.
  • fuboTV wants to launch a free-to-play gaming experience in 2021 through its acquisition of Balto Sports.
  • After this, fuboTV wants to launch a sportsbook app, where consumers can bet on sports, and integrate this into their Live TV streaming app.

This is a really good sign that they are going to build their own sportsbook, although my doubts about the size of the total sports betting total addressable market (TAM) remain.

  • Data out of the currently legal states suggest that online sports betting companies are making $26 per adult per year, which would only imply a $6.3 billion revenue TAM in a fully-legalized U.S. population.

fuboTV ($FUBO) stock does warrant a Cents Price Target increase on this news, though.

  • Read the full analysis as a ROIC member here, where I increase our Price Target and update our investment decision on $FUBO.
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