FuboTV, a US-based live television streaming service backed by corporates AMC Networks, Discovery, Sky, Univision Communications and 21st Century Fox, agreed to merge with virtual entertainment provider FaceBank on Monday.
The acquisition price has not been disclosed, but FaceBank revealed in a regulatory filing that it had secured a $100m loan to fund the operations of FuboTV, with $10m of it set to be advanced by the start of next month.
Founded in 2015, FuboTV operates an over-the-top online television service available in the US, Canada and Europe. It focuses on sports, news and entertainment and allows subscribers to stream and record live TV channels.
FuboTV will become a wholly-owned subsidiary of FaceBank, which will subsequently rebrand under the FuboTV name. The combined entity will be led by FuboTV’s chief executive, David Gandler.
The acquisition has been approved by the boards of both companies and the major shareholders of FuboTV. It is expected to close by end of this month.
The merged company intends to expand further internationally by tapping into the global presence of FaceBank’s e-commerce and payment platform, Nexway.
FuboTV will also leverage FaceBank’s partnerships with celebrities to bolster its offerings. FaceBank is best known for its virtual live concert events featuring holograms of deceased performers.
The combined entity will also aim to become a listed company as soon as it is practical. FaceBank’s stock is currently traded over the counter.
FuboTV has raised $149m in equity funding to date. Media companies 21st Century Fox and AMC Networks co-led its $75m series D round in 2018, invesyting together with broadcasters Sky and Discovery in addition to Northzone and Luminari Capital.
The company secured $55m in a 2017 series C round led by Northzone, with participation from 21st Century Fox, Sky and Scripps Networks Interactive, the latter of which was acquired by Discovery in early 2018.
Sky and 21st Century Fox co-led a $15m series B round for FuboTV in 2016 that included DCM Ventures, Luminari Capital, LionTree Partners and a range of private investors.
FuboTV had raised $4m in a series A round in 2015 from broadcaster Univision Communications, Lion Tree Partners, Luminari Capital and I2BF Digital, a subsidiary of investment firm I2BF Global Ventures.
Image courtesy of FuboTV.
