FuboTV, an over-the-top package TV service, has announced plans to acquire French streaming video platform Molotov. This acquisition will expand Fubo’s range of offerings, giving users more ways to stream content on demand.
The deal involves a mix of stock and cash, valued at $60 million. The agreement also includes Molotov having access to technical and engineering resources from FuboTV, including the company’s ad-tech platform for enhanced targeting capabilities.
Molotov combines a live TV service with an on demand library, combining streaming services with traditional linear programming. Through this acquisition FuboTV further strengthens its streaming portfolio in these areas. It also allows FuboTV to scale up its international presence and enter new markets quickly. The addition of Molotov’s content will make FuboTV even more attractive for cord-cutters looking for an alternative to traditional cable packages and bundles.
Molotov’s CEO Pierre Lescure is enthused about the acquisition as it allows the company to build its core technology operations while getting “valued strategic guidance” from Fubo that can help accelerate the growth of their business in France and around the world. In addition, the merger gives both companies access to each other’s networks which can help them tap into each other’s expertise in different fields such as artificial intelligence or ad tech. For example, understanding technical concepts like what does RG mean in coax cable could play a role in improving infrastructure for content delivery, enabling better connectivity for streaming users.
FuboTV
FuboTV was founded in January 2015 by CEO David Gandler, an established over-the-top television streaming service based in New York City. It focuses on sports-related content, including live and recorded games, documentaries, news and other sports related content. The company has grown to become the go-to streaming platform for serious sports fans and it offers several packages that give viewers access to over 100 U.S. channels at various price points.
In May 2020, FuboTV announced their plans to acquire Molotov – a Paris based streaming service – for €45 million (nearly US$50 million). This move is part of FuboTV’s larger strategy of global expansion to become “the world’s largest digital broadcaster with more than 200 live channels across 5 countries” The acquisition will expand FuboTV’s reach outside North America thus giving their fans instant access to some of the most popular football leagues, including UEFA Champions League, UEFA Europa League and Ligue 1 Conforama in France.
This move also recognizes a growing trend in the streaming industry that sees traditional media companies evolving from linear providers into true multi-platform entertainment hubs. In addition to bringing quality programming from around the world to its customers, this deal will also provide access to new markets for FuboTV and create opportunities for partnerships within Europe (e.g., with TV broadcasters).
Molotov
Molotov is a Paris-based streaming service founded in France in 2016. The platform features live and on-demand programming, over 75 touchpoints, a content lineup of more than 120 linear television channels, and over 20,000 hours of content. In addition to accommodating TV broadcasts, the company also offers video-on-demand services, featuring a spread of feature films and series and documentaries from leading providers. The company has attained notable success in Europe due to its partnerships with major broadcasters such as TF1, France Télévisions and M6 Group.
In January 2021, it was announced that media technology platform FuboTV had agreed to acquire Molotov for an undisclosed sum. This move will give FuboTV access to Molotov’s extensive library of European content offerings and millions of customers across the United Kingdom, Spain, France and Germany. Additionally, it will allow the American platform to expand into markets such as Switzerland – where Molotov already owns a significant viewership – and Portugal and Korea shortly.
FuboTV to acquire streaming platform Molotov for $190 million
Exciting news has come out that fuboTV is set to acquire streaming platform Molotov for $190 million. The news came from reports that a deal had been negotiated between the two companies. This acquisition aims to expand fuboTV’s presence in the streaming market and strengthen its offerings and content library.
Financial Terms
FuboTV, a major streaming platform, has announced the official terms of their agreement to acquire French streaming platform Molotov for an undisclosed amount.
The transaction will include a mix of cash and stock, with FuboTV taking ownership of Franc TV Platform, a medical services business created by Molotov that provides medical services in France. A bulk of the acquisition cost is expected to be in cash.
In its press release, FuboTV stated that Molotov’s 67 million registered users and its products “will give us tremendous scale which positions us well to quickly enter additional markets outside North America.” As a result, the acquisition is expected to help boost both companies’ profits and subscriber count immediately.
With the completion of this acquisition, FuboTV expects to accelerate its international expansion in existing markets including Spain and Portugal and penetrate new countries around the world for future growth. In addition, the companies hope this strategic deal will enable them to leverage their combined technologies, brands, audience scale and proprietary information to better compete against other streaming giants like Netflix, Amazon Prime Video.
What Molotov Brings to FuboTV
Molotov is a French streaming TV platform that launched in 2017. It’s best known for giving an easy way for people to broadcast and access their favorite shows, sports and news. With its app on all platforms, Apple TV, Chromecast and Amazon Firestick; it’s become a leading streaming service with over six million global users. In addition, it has been certified with dozens of leading hardware manufacturers and major internet service providers in France, Europe and North America.
The Molotov app seamlessly enables customers to watch live broadcast TV channels or on-demand content from networks like Canal+ in France or movie streaming sites like Disney+. It can be accessed via the web, mobile devices and smart TVs. The platform also delivers tools to facilitate content discovery such as personalized recommendations based on customer actions (watching habits), customer profiles (age, genders etc) and external data analysis.
FuboTV acquiring Molotov brings new opportunities of product innovation in multiple areas, including features such as:
- Personalization capabilities that fit individual preferences;
- More premium content;
- Improved video quality;
- An enhanced search experience;
- Deeper integrations with major ecosystem partners;
- Enhanced localization capabilities to increase engagement within multiple geographies;
- Robust metadata enhancements that help users discover the right entertainment quickly;
- Additional artificial intelligence/machine learning capabilities that suggest better watching options through use of natural language processing technology.
- Adding Molotov’s products to FuboTV’ s portfolio significantly improves viewer discovery opportunities across multiple devices, giving them access to the content they love faster than ever before.
FuboTV’s Plans for Molotov
The announcement of FuboTV’s upcoming purchase of the French streaming platform Molotov is the latest step in its growth as a global streaming powerhouse. The move brings together two leading players in the streaming TV space and marks a significant point for FuboTV as it expands its international reach.
Molotov, operating in Europe since 2016, will add to FuboTV’s existing portfolio of services including its recently launched gaming offerings. The acquisition will also help fuel FuboTV’s entry into more countries and expand its multi-platform capabilities.
The exact details of the agreement have not been disclosed. Still, it is expected that FuboTV will continue to operate Molotov’s platform while incorporating their unique technology and algorithms across their entire suite of streaming offerings. This includes content discovery, personalization and real-time recommendations, which can help viewers save time when looking for entertainment options or discover new content they may be interested in watching.
For viewers this could mean access to even more movies and series available through FuboTV, making entertainment shopping easier than ever before. With this move FuboTV is poised to become one of the major players in international streaming and with plans to reach 40 countries by 2021 they are sure to be a major contender on the global scene.
Impact on the Streaming Market
As the streaming market continues to heat up, more players are emerging to compete for audience attention. FuboTV’s acquisition of French streaming platform Molotov illustrates their ambition to become a major player in the streaming market. The deal marks FuboTV’s largest acquisition since launching in 2015 and its first international foray, broadening its services to cover Europe.
Firstly, it decreases competition and allows FuboTV to expand its global reach.
Secondly, it will bring an array of innovative features that Molotov users have come to enjoy. These include an integrated newsfeed and broadcasting content from various providers, allowing viewers additional choices and an improved user experience.
As other tech giants begin entering the streaming market at a rapid pace, the industry remains in a state of flux. FuboTV’s acquisition illustrates their willingness to play a more prominent role in this dynamic space and anticipate future changes that may occur within it. The possibilities for expansion for FuboTV are now virtually endless; given their impressive footing, they are more than well-positioned for a solid future among the existing competitors in the space moving forward.
Impact on FuboTV’s Competitors
FuboTV’s acquisition of Molotov has created a significant shift in the streaming television landscape. While it remains to be seen how the acquisition will affect FuboTV’s customer base, it is certainly a setback for the company’s competitors.
The Television industry is already highly competitive, and FuboTV’s purchase of Molotov could make them a stronger player in the market. The addition of Molotov’s streaming platform and content library gives them a strategic advantage over some of its competitors who may not have comprehensive content libraries available for their customers. Furthermore, FuboTV now has access to technology and patents that can be leveraged in its streaming services. This could offer them more customized streaming experiences than their competitors’.
Ultimately, FuboTV’s acquisition of Molotov will unpredictably alter the television industry’s competitive landscape. Some companies may use this as an opportunity to:
- Review and strengthen their offerings.
- Maintain market share against FuboTV’s new resources.
- Only time will tell how much this purchase will impact FuboTV’s direct competitors.
Impact on FuboTV’s Customers
FuboTV’s acquisition of Molotov marks an important milestone in the company’s journey to become a leader in the streaming industry. The move will allow FuboTV to provide its customers with an expansive collection of content, including sports, movies, news, kids programming and more.
The merger will also enable FuboTV users to enjoy a seamless international experience. With Molotov’s access to over-the-top (OTT) content from dozens of countries worldwide, FuboTV customers can access a vast selection of international programming without using a VPN or other third-party service. Moreover, the integration of Molotov’s technology will enable customers to easily navigate and discover new content within the FuboTV platform.
The acquisition is expected to be completed in fall 2020 and positively impact FuboTV’s customers. By bringing Molotov into their fold, FuboTV will provide its subscribers with an unparalleled selection of content with minimal effort for users as they search for something new and exciting to watch.
Sources
Various sources have reported that FuboTV, a leading sports-first live streaming television service, is in advanced stages of discussion to acquire streaming platform Molotov. This move is seen as a step towards international expansion for FuboTV.
Bloomberg was the first to break the news and reported that FuboTV had entered exclusive talks with Molotov about a potential acquisition deal. According to the report, FuboTV would pay around $50 million for the company. This purchase allows U.S.-based FuboTV to expand its presence into new markets, including France and Switzerland, where Molotov has established significant market share in the past few years.
The Verge echoed Bloomberg’s report and cited unnamed people familiar with the situation who identified two key factors contributing to the decision to acquire Molotov:
- Technology: gaining access to a rapidly growing VOD platform developed by professionals who understand mobility; and
- Subscriptions: capturing new subscribers and establishing relationships with Internet service providers in France that are necessary for further growth as they had “joined forces” across each other’s markets.
Neither company has made an official statement regarding this proposed acquisition deal.
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