11:53 AM EST, 01/07/2025 (MT Newswires) -- FuboTV ( FUBO ) and Walt Disney's ( DIS ) agreement to combine FuboTV ( FUBO ) and Hulu + Live TV creates a dominant player in the over-the-top broadcast market with over 6.2 million subscribers, Wedbush said in a note Tuesday.

Settlement of antitrust claims related to the planned Venu joint venture among Disney ( DIS ), Fox (FOX) and Warner Bros Discovery ( WBD ) strengthens FuboTV's ( FUBO ) balance sheet, according to the note.

The firm said the combined entity is slightly smaller than competitors like SlingTV and YouTubeTV but remains well positioned to capture "cord nevers," a demographic that avoids traditional cable.

"We firmly believe that the new FuboTV ( FUBO ) can add 500,000 to 1 million customers per year for the next four years, which is likely to drive revenue growth of $500 million or more each year," Wedbush said.

The brokerage raised its price target on FuboTV's ( FUBO ) stock to $6.40 from $3 and reiterated its outperform rating.

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