What happened
Shares of fuboTV (FUBO +0.00%) soared 20% Tuesday morning before settling back to a gain of 14% as of 11:30 a.m. EST.
Shareholders have had a turbulent month as the stock soared from its October 2020 initial public offering (IPO) to a market capitalization of more than $4 billion in December. But some negative analyst reports then drove the stock down by more than 60% before today's bounce.
So what
One short-seller report said fuboTV's attempt to move into sports betting with its purchase of online fantasy sports tool developer Balto Sports was "pure stock promotion." But today, fuboTV announced plans to acquire interactive gaming company Vigtory, and said it expects to launch a sportsbook by the end of 2021.
Image source: Getty Images.
Now what
The sports-focused streaming platform said it plans "to leverage Vigtory's sportsbook platform and digital gaming assets, and its consumer-driven betting technology." fuboTV wants to offer a fully integrated betting experience for its customers.
The company appears to aspire beyond its streaming service with the launch of a sportsbook. Vigtory already has an agreement with riverboat casino operator Casino Queen in Iowa. fuboTV said in a statement that Vigtory is pursuing other "market access agreements" in the eastern U.S., and noted that Vigtory management has prior casino and sports betting experience.
Investors who have ridden out the recent turbulence in the stock are cheering the announcement today, which seems to support fuboTV's prior indications of moving into the growing sports betting business.
