I just made a yolo call option bet and I would like to share my thesis.
I believe they will get bought by $NFLX or $DIS and here are my reasons why.
In typical growth strategy, which I am an expert through my consulting background, there are three pillars you rely on: new customers (new groups of customers…e.g., Lululemon making kids clothes), new products (something completely new or adjacent…e.g., Apple launching Apple Watch) or geographic expansion.
$NFLX has been launching into new markets but other than gaming, they really haven’t gotten into new customers or new products. And to be honest, I don’t know how big the market is going to be for their gaming business. $FUBO’s live sports will satisfy two of the three pillars with over 1,000,000 subscribers and sports-betting revenue. This is something $DIS might also need as ESPN business unit has not been able to deliver ad impressions.
Value $FUBO brings
- Live sports (something Neflix doesn’t have)
- Hot and ever-growing sports-betting revenue (something ESPN and Netflix doesn’t have)
- Sports fanatics (something Netflix doesn’t have and something ESPN has been losing to other channels/media)
Hence, I am making a big bet on $FUBO. Here is a reminder though. Don’t be a bitch and complain if this trade doesn’t work out for you. Do your own DD.