What is going on with fuboTV (NYSE:FUBO) today? Shares of FUBO stock are down more than 5% in apparent sympathy with the general market. Additionally, the Nasdaq 100 is down over 1%. However, the company has announced some good news recently: an exciting deal with the English Premier League (EPL).
This morning, fuboTV announced that it had acquired exclusive rights to stream the EPL in Canada for the next three years. The EPL is England’s top soccer league and the most-watched soccer league in the world. Furthermore, fuboTV will have these rights starting with the 2022 to 2023 season. As a result, all 380 Premier League matches will stream on fuboTV via the Fubo Sports Network. However, the platform’s media catalog in Canada is not as developed as in the United States. Using fuboTV, Canadian users can access about a dozen channels for $15 per month or $100 per year.
FUBO Stock: fuboTV Acquires EPL Rights in Canada
The cost for fuboTV to acquire these streaming rights was not disclosed. However, it can be assumed that the rights carry a premium price tag. According to The Globe and Mail, NBC Sports paid more than $2.7 billion to exclusively stream the EPL in the United States in a six-year deal. That figure amounts to about $450 million each year.
When it comes to the EPL rights in Canada, fuboTV CEO David Gandler was pleased with the deal. Gandler added:
“The Premier League is considered to be the best soccer league in the world and has a huge fan base in Canada […] This deal allows us to bring yet another top-notch property to fuboTV, further differentiating our content offering, and giving Canadians another reason to cut the cord for exciting, exclusive sports content.”
That all said, Wedbush analyst Michael Patcher did recently lower his price target for FUBO stock, from $53 to $32. However, the $32 price target still implies a more than 130% gain from current prices. Patcher says he lowered the target because of a “largely unwarranted” decline in price. Additionally, the analyst expects “cord-cutting and cord-shaving to continue for the foreseeable future” as the trend from linear television to over-the-top (OTT) and connected television (CTV) persists. Patcher also believes fuboTV’s focus on sports betting and gaming will allow the company to differentiate itself from other streamers and accelerate subscriber growth.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.