Shares of FuboTV Inc. (FUBO) are down nearly 22% in early open market trading on Tuesday after the company announced a reverse stock split of its common stock.
The company said it would do a reverse stock split of its Class A and Class B common stock at an exchange ratio between one-for-eight and one-for-twelve.
The final ratio would be selected by the company’s board.
The split has been approved by the board and by a unanimous written consent of stockholders representing a majority of the outstanding voting interests.
Fubo’s Class A common stock is expected to trade on a split-adjusted basis later this quarter.
ESPN reseller agreement
Additionally, Fubo and ESPN (DIS) announced plans for a reseller and marketing arrangement to expand the reach and distribution of Fubo’s services.
Fubo Sports, which already includes ESPN Unlimited as well as FOX and CBS programming, will be available for purchase in ESPN’s commerce flow, according to the press release.
ESPN will also feature Fubo in various placements across ESPN digital properties, which is subject to the negotiation of definitive agreements.
The move is expected to lower the cost of acquisition and position Fubo as “the premier destination for fans.”
Results
For the fiscal first quarter, following the completion of the merger with Hulu + Live TV, Fubo reported a top and bottom line beat.
In its shareholder letter, the company said it will continue to revisit issuing guidance in future quarters after it gets better visibility on the timing and impact of the combined company.