Virtual entertainment company Facebank Group has proposed a merger with TV provider FuboTV, according to a report from Variety. The closing of the merger is expected to happen later this month.
Following the merger’s close, FuboTV will become a wholly owned subsidiary of Facebank. As a result, the merged company will be renamed FuboTV Inc. The company is expected to be led by current FuboTV chief executive officer David Gandler and will be based out of New York. Additional details about the board of directors and the merger’s management structure will be revealed at a later date.
“The business combination of Facebank Group and FuboTV accelerates our ability to build a category-defining company and supports our goal to provide consumers with a technology-driven cable TV replacement service for the whole family,” says Gandler. “With our growing businesses in the U.S., and recent beta launches in Canada and Europe, FuboTV is well-positioned to achieve its goal of becoming a world-leading live TV streaming platform for premium sports, news and entertainment content.”
Under the agreement terms, Facebank has obtained a secured revolving line of credit of $100M for FuboTV. Facebank will advance a $10M loan to FuboTV by April 1.
The transaction has been approved by both companies and their major stockholders.