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🤲 Disney and FuboTV to Merge Live TV

+ Nvidia, chip stocks pop after Foxconn reports record revenue

January 06, 2025

Good afternoon! I am currently in Spain on vacation for a week so I will unfortunately only be able to do the two stories.

STREAMING
Disney and FuboTV to Merge Live TV Streaming Services

Disney is combining its Hulu + Live TV service with FuboTV, creating the second-largest digital pay-TV provider in North America with 6.2 million subscribers. Disney will own 70% of the new venture, while Fubo will hold 30%, signaling a strategic play to strengthen their hold in the live-streaming market.

The deal, which excludes Hulu’s on-demand service, aims to enhance consumer choice by keeping both platforms available separately through their respective apps.

A Winning Play for Sports Fans

This merger solidifies Fubo’s sports-centric brand while incorporating Hulu + Live TV’s entertainment content, making the combined service a competitive alternative to YouTube TV. Fubo CEO David Gandler highlighted the benefits of scale, promising a more comprehensive lineup with flexible bundles.

The partnership also settles Fubo’s legal feud with Disney, Warner Bros. Discovery, and Fox over their Venu Sports venture, clearing the way for Venu’s long-delayed launch.

Stock Surge and Financial Stakes

Fubo’s stock soared 250% after the announcement, reflecting investor excitement over the strengthened position. The companies project $6 billion in revenue at closing, with plans to hit $7.5 billion by 2028. Disney also sweetened the deal with a $145 million term loan commitment to Fubo in 2026, securing future expansion.

Implications for the Streaming Wars

By merging their live TV operations, Disney and Fubo are doubling down on live sports and news—content still tethered to linear TV’s dominance. However, questions remain about how this will impact pricing and whether it can fend off competition from other streamers like YouTube TV and Netflix.

With Venu Sports and ESPN’s direct-to-consumer plans also in motion, Disney is clearly eyeing sports supremacy in the streaming space.

With live TV bundles evolving, this partnership could reshape how consumers experience sports and entertainment—if the execution matches the hype.

CHIPS
Nvidia, chip stocks pop after Foxconn reports record revenue

Global semiconductor stocks hit a high note Monday after Foxconn flexed with a record fourth-quarter revenue of $63.9 billion—15% higher than last year. Turns out, servers powering AI tech are the MVPs of their earnings lineup.

The Breakdown

Foxconn, Apple’s favorite assembler, said its cloud and networking division—home to AI servers built with Nvidia’s tech—carried the quarter. But the consumer electronics squad, including iPhones and consoles, saw a slight decline.

Wall Street’s Reaction

• Nvidia shares jumped 3% as investors geared up for CEO Jensen Huang’s CES keynote.
• AMD and Qualcomm followed with 3%+ gains.
• Over in Asia, TSMC closed up nearly 5%, while South Korea’s SK Hynix and Samsung popped 10% and 4%, respectively.

Europe Got in the Game Too

Dutch semiconductor powerhouse ASML climbed 8.7%, and Infineon hit nearly 7% growth.

What Else Is Powering the Chip Surge

Microsoft’s announcement of an $80 billion splurge on AI data centers also gave chip stocks an extra jolt. The tech giant’s spending spree highlights the ongoing AI arms race and demand for GPUs from companies like Nvidia.

Looking Ahead

Foxconn’s prediction of “significant growth” in Q1 is music to investors’ ears. But with softening consumer electronics demand, the real question is whether AI servers can keep shouldering the load.

RESOURCES
The Federal Reserve Resource

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