FuboTV (NYSE:FUBO) stock is taking off on Tuesday after announcing a deal to further its sports gambling efforts.
A FuboTV news release reveals that it’s acquiring sports betting company Vigtory. The company doesn’t reveal the financial details of the deal but does say it expects it to close in the first quarter of 2021.
Vigtory was founded in 2019 by Sam Rattner and he serves as the company’s co-CEO alongside Scott Butera. The deal will see both of them joining FuboTV as the president and CEO of its gaming division, respectively.
FuboTV notes that it plans to use assets acquired in the Vigtory deal to release its own sportsbook service by the end of the year. This has it aiming to create a frictionless betting experience for its customers.
David Gandler, co-founder and CEO, fuboTV, said the following about the deal boosting FUBO stock higher today.
“We believe online sports wagering is a highly complementary business to our sports-first live TV streaming platform. We don’t see wagering as simply an add-on product to fuboTV. Instead, we believe there is a real flywheel opportunity with streaming video content and interactivity.”
FuboTV has also been making other deals recently to ramp up its online betting business. The company is doing so to prepare for what Zion Market Research estimates will become a $155 billion industry by the time 2024 rolls around.
FUBO stock was up 17% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.