Normally when a streaming provider drops some content, the stock isn’t far behind, as outraged streamers want the old status quo back in play. That’s not what happened today as FuboTV (NYSE:FUBO) pulled the plug on certain CBS stations and saw its stock jump substantially in Tuesday afternoon trading.
The change was comparatively minor, reports note. For television aficionados, though, it was quite a blow. FuboTV announced that it would cut over 100 local CBS stations and instead replace them with the national CBS feed. The firm made this move after negotiations with Paramount Global (NASDAQ:PARA), CBS’ parent company, failed to produce results. Normally, the various CBS affiliates allow Paramount to handle such deals with small streaming services and then agree to terms later. But this time, reports suggest the affiliates didn’t like the deal reached. Thus, they stayed out altogether to be replaced with a national feed.
Those most likely impacted by the FuboTV move will be mostly smaller markets. Some mid-sized markets also face issues. In particular, most of the stations that got replaced with national feeds were owned by Nexstar, Scripps, Sinclair, and TEGNA. This might not seem like such a big change. However, those who watch local affiliates for news, weather, and syndicated programs will likely feel the loss.
Overall, analyst consensus calls FuboTV stock a Moderate Buy with 64.41% upside potential thanks to an average price target of $4.25.
