Strategic Debt Management Sends Shares Higher
FuboTV Inc. (FUBO) shares popped in extended trading Wednesday after the streaming company announced a substantial debt repurchase. The move shows how Fubo is actively managing its balance sheet following its major deal with Hulu + Live TV.
Here's what happened: After the closing bell, Fubo revealed it bought back $140.2 million of its outstanding 3.25% Convertible Senior Notes due February 15, 2026. The company paid 100% of the principal amount plus any accrued interest that hadn't been paid yet.
The timing matters. This buyback was funded by a $145 million term loan that Fubo secured as part of its 2025 business combination with Hulu + Live TV announced last week. Essentially, the company swapped one form of debt for another, but with a key advantage.
"Today's repurchase, funded with the proceeds from our recent term loan, underscores Fubo's continued proactive management of our capital structure," said David Gandler, co-founder and CEO.
The real headline for shareholders? "We are also pleased to report that no shareholders were diluted as a result of this repurchase, as we have repaid the 2026 notes in cash using proceeds from the recent term loan," Gandler added. Translation: Those convertible notes could have turned into stock, diluting existing investors, but now they won't.
As of September 30, 2025, Fubo had $280.3 million in cash, cash equivalents and restricted cash. The company is scheduled to report fourth-quarter financial results in February.