fuboTV Inc. to acquire Molotov SASTuesday, November 9th, 2021
fuboTV to Expand Global Footprint With Acquisition of France’s Leading Live TV Streaming Service, Molotov SAS
- Acquisition Accelerates fuboTV’s Mission to Build The World’s #1 Interactive Sports-First Live TV Streaming Platform
NEW YORK — fuboTV Inc. (NYSE: FUBO), the leading sports-first live TV streaming platform, today announced it has achieved a significant milestone towards global expansion and entered into a binding agreement to acquire France’s number one live TV streaming company, Molotov SAS.
The transaction fuels fuboTV’s global expansion strategy by leveraging Molotov’s unique direct-to-consumer live TV streaming service and its advertising video-on-demand (AVOD) platform, Mango, which combined total nearly four million monthly active users in France (September 2021). The Molotov streaming platform was designed to be easily localized for new markets and languages, facilitating quick and efficient launches in additional countries. The technology capabilities between the two companies are expected to enable fuboTV to launch its interactive sports and entertainment streaming platform on a global scale.
Molotov brings to fuboTV’s international business a freemium model which leverages a free tier to drive user growth and upsell customers to premium add-on channel packages. fuboTV plans to leverage Molotov’s strategy and low-cost marketing funnel for international growth while implementing fuboTV’s marketing technology to accelerate Molotov subscriptions.
Molotov has distinguished itself in France with a unique entertainment experience focused on live and on-demand TV series, movies, documentaries and kids content. fuboTV will look to provide Molotov with sports content and sports-first product features. The newly combined streaming platform has the potential to offer a robust and personalized product experience for everyone in the household. This well-rounded offering will also enable fuboTV to customize local content offerings as it enters new markets.
Under the terms of the agreement, fuboTV has submitted a binding offer to acquire Molotov SAS for €164.3 million (approximately $190 million using the foreign currency exchange rate as of November 8, 2021) in a combination of cash and equity consideration, of which at least 85% is expected in equity. The acquisition is subject to customary requisite approvals and closing conditions. It is estimated to close sometime during the first quarter of 2022 at which point the Company expects to provide guidance on how the transaction will impact fuboTV’s financials.
Molotov will continue to be based in Paris and led by JeanDavid Blanc, its co-founder. Blanc has also been named president, Molotov. Molotov’s approximately 100 employees will remain with the Company and fuboTV plans to further expand the product and engineering team in Paris. Molotov was founded in 2015 by Blanc (founder of AlloCiné) and Pierre Lescure (co-founder of Canal+).
“Molotov has set the benchmark for ad-supported and subscription streaming platforms in Europe,” said David Gandler, co-founder and CEO, fuboTV. “We believe this strategic asset will help accelerate our goal of achieving global scale and operating leverage as we continue to improve and innovate on our live, interactive streaming TV experience for sports fans and their families.”
Gandler added: “In August, we launched an At-The-Market (ATM) stock offering program to provide the flexibility to raise capital to accelerate our growth plans, including global expansion. The opportunity offered by Molotov is a perfect example of how we can do this. We look forward to delivering a truly category-defining live TV streaming platform to consumers around the world.”
Blanc commented: “We’re thrilled to scale Molotov with fuboTV with whom we share the same ambition and vision for a live TV streaming platform. Our goal is to provide consumers with a best-in-class streaming experience with premium television content on a global scale.”
fuboTV currently operates in the U.S. and Canada and was the first U.S. virtual MVPD to enter Europe with its 2018 launch in Spain. Molotov operates in France, Burkina Faso, Ivory Coast, Senegal and Cameroon and expects to launch soon in the Democratic Republic of Congo. The Company also operates in Morocco through a partnership with Maroc telecom.