Fubo Makes Strategic Investment in BKFC, Will Stream BKFC 57 Live Event on February 2
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Insights
The strategic investment by FuboTV in Bare Knuckle Fighting Championship (BKFC) signifies a notable expansion in FuboTV's content portfolio, specifically within the combat sports genre. This move can be interpreted as an effort to diversify and strengthen FuboTV's live sports offerings, which is central to the company's value proposition. The decision to stream high-demand events like BKFC 57 and develop original programming can potentially increase subscriber engagement and retention for FuboTV, as exclusive content is a key differentiator in the competitive streaming market.
Furthermore, the involvement of FuboTV's CEO on BKFC's board suggests a deeper level of strategic collaboration. This could lead to more integrated marketing efforts and possibly influence the direction of BKFC's content strategy to align with FuboTV's business objectives. For investors, the focus should be on the viewership metrics and subscriber growth resulting from this partnership, as these are critical indicators of the investment's success.
From a financial perspective, FuboTV's minority investment in BKFC must be scrutinized for its impact on FuboTV's balance sheet and cash flows. The cost of the investment and the expected return, in terms of additional revenue streams from Pay-Per-View events and advertising on the free ad-supported streaming TV (FAST) platform, will be pivotal in assessing the financial health of the deal. It's important to note that such strategic investments often come with risks, including the uncertainty of consumer demand for niche sports content and the ability to monetize the investment effectively.
Investors should also consider the potential for increased content acquisition costs and how these may affect FuboTV's profitability margins. Given that BKFC was FuboTV's best-performing MMA property in 2023, the investment might be justified if the trend continues and contributes positively to the company's top-line growth.
The partnership between FuboTV and BKFC underscores the growing importance of niche sports in the streaming landscape. With BKFC's viewership and engagement growth on Fubo Sports, the investment is a strategic move to capitalize on a unique segment of the combat sports market. The commitment to co-develop a reality series is indicative of an industry trend where media companies are not just content distributors but also content creators.
For stakeholders, the key will be the execution of these initiatives and their reception by the audience. The ability to create an emotional connection between fighters and fans through original programming like 'BKFC: What’s Your Why?' could enhance the sport's appeal and drive further viewership. The success of such content could set a precedent for similar investments in the future and might influence how other streaming platforms approach sports content acquisition and creation.
Fubo Co-Founder & CEO David Gandler Joins BKFC Board of Directors
The strategic investment expands the companies’ current partnership, which includes live distribution rights on Fubo Sports, Fubo’s FAST (free ad-supported streaming TV) linear network, and Pay-Per-View (PPV). BKFC’s live combat fights are consistently among the top 10 most watched programming on Fubo Sports while BKFC 48 on August 11, 2023, headlined by social media star Bryce Hall vs. Gee Perez, was the most watched combat sports event in the channel’s four year history.
Through the expanded partnership, Fubo will stream select BKFC’s live events, including BKFC 57 on February 2, 2024, live from the Seminole Hard Rock Hotel and Casino in
Fubo will also stream upcoming BKFC original programming including BKFC Prospect Series, and the companies will co-develop a reality series, BKFC: What’s Your Why?, aimed at creating an emotional connection between fighters and fans.
“Fubo is committed to bringing consumers an aggregated content experience that includes the widest choice of live sports programming,” said Gandler. “The singularity of bare knuckle fighting has already made BKFC an important strategic partner for our Fubo Sports linear channel. BKFC was our best performing MMA property in 2023, and we have been very impressed with its continued viewership and engagement growth on Fubo Sports. With this investment, Fubo is committed to the future of BKFC and working with David Feldman and his team to scale the sport.”
“The investment by Fubo is not only a milestone for BKFC because it signifies and validates our continuing growth and evolution, but also will increase viewership and distribution exponentially through Fubo’s extended reach,” said David Feldman, president and founder, BKFC.
About Fubo
With a global mission to aggregate the best in TV, including premium sports, news and entertainment content, through a single app, FuboTV Inc. (d/b/a Fubo) (NYSE: FUBO) aims to transcend the industry’s current TV model. The company operates Fubo in the
In the
Learn more at https://fubo.tv
About Bare Knuckle Fighting Championship (BKFC)
Bare Knuckle Fighting Championship (BKFC) is the first promotion allowed to hold a legal, sanctioned, and regulated bare knuckle event in
In BKFC, only those fighters who are established professionals in boxing, MMA, kickboxing, or Muay Thai are allowed to compete. The referees and judges are required to have extensive professional combat sports experience. All fights are held under the auspices and control of an Athletic Commission. Unlike other fighting organizations and combat sports internationally which claim to be “bare knuckle”, but require wraps, tape, and gauze; BKFC is true to its word as fighters are not allowed to wrap their hands to within one inch of the knuckle. This makes BKFC unquestionably the truest form of bare knuckle fighting. BKFC is dedicated to not just creating the safest, most exciting, and highest-level bare-knuckle fighting organization in the world, it’s also leading the way for a new fully recognized professional combat sport. BKFC is truly the sport of the future, which fully respects its remarkable past.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements of FuboTV Inc. (“Fubo”) that involve substantial risks and uncertainties. All statements contained in this press release that do not relate to matters of historical fact are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including statements regarding our business strategy and plans, channel programming, partnerships, investments and our market opportunity. The words “could,” “will,” “plan,” “intend,” “anticipate,” “approximate,” “expect,” “potential,” “believe” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that Fubo makes due to a number of important factors, including but not limited to risks related to our pursuit and engagement in acquisitions; our actual operating results may differ significantly from our guidance; risks related to Fubo’s access to capital and fundraising prospects to fund its ongoing operations and support its planned growth; risks related to diverting management’s attention from Fubo’s ongoing business operations to address integration and fundraising efforts; the restrictions imposed by content providers on our distribution and marketing of our products and services; our reliance on third party platforms to operate certain aspects of our business; risks related to our technology, as well as cybersecurity and data privacy-related risks; our ability to achieve or maintain profitability; our revenue and gross profit are subject to seasonality; our operating results may fluctuate; our ability to attract and retain subscribers; we may not be able to license streaming content or other rights on acceptable terms; risks related to the prior operation and dissolution of our wagering business; risks related to the difficulty in measuring key metrics related to our business; risks related to the highly competitive nature of our industry; risks related to ongoing or future legal proceedings; and other risks, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. Further risks that could cause actual results to differ materially from those matters expressed in or implied by such forward-looking statements are discussed in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 filed with the Securities and Exchange Commission (“SEC”), and our other filings with the SEC. We encourage you to read such risks in detail. The forward-looking statements in this press release represent Fubo’s views as of the date of this press release. Fubo anticipates that subsequent events and developments will cause its views to change. However, while it may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. You should, therefore, not rely on these forward-looking statements as representing Fubo’s views as of any date subsequent to the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240126376160/en/
Investor Contacts
Alison Sternberg, Fubo
asternberg@fubo.tv
JCIR for Fubo
ir@fubo.tv
Media Contacts
Jennifer L. Press, Fubo
jpress@fubo.tv
Bianca Illion, Fubo
billion@fubo.tv
Source: FuboTV Inc.
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