Molotov will pass under the American flag for 164.3 million euros. The French streaming platform, which had almost been bought by Altice, becomes the European hub for FuboTV’s operations, a rising player in the sector.
After several failed takeover attempts and years of instability, Molotov finally joined the American group fuboTV. The French streaming platform confirms that it will be acquired for an amount of 190 million dollars (164.3 million euros) in the form of a cash and securities transaction. The acquisition is naturally “Subject to the required approvals and customary closing conditions” and Molotov says it is expected to be completed in the first quarter of 2022.
A rising figure in the sector, fuboTV already presents itself as the leading American streaming platform for live television and sports programs (NFL, NBA, MLS, etc.). Created in 2015, it recently announced that it had passed the milestone of one million subscribers, but remains far from the heavyweights of the sector such as YouTube TV or Hulu.
The platform has been present in the United States, Canada and Spain since 2018 and intends to rely on Molotov to progress in Europe. The French startup also confirms that the objective is “The deployment of a global platform on both continents and internationally”. For this, Molotov is “Destined to become the European hub for the group’s operations” and will remain based in Paris. Indeed, the video streaming service will continue to be chaired and directed by its founder and CEO Jean-David Blanc, the latter also being appointed Chief Strategy Officer. The company fuboTV nevertheless plans to expand the business to make it “A development pole for the group”.
Molotov, a French streaming television platform, goes under the American flag. © Molotov
“We are convinced that this strategic acquisition will help make fuboTV a global platform with strong operational leverage, unique in its kind for all sports fans and their families”said David Gandler, co-founder and CEO of fuboTV. And to add: “With Molotov, we look forward to providing users around the world with a truly unmatched TV streaming experience in its class.”. The two platforms evoke “An important step” in their development and this takeover appears to be good news for Molotov. The platform claims 17 million registered subscribers, but it only has around 220,000 paying customers.
French giants tried to buy Molotov
The American fuboTV will have to find a viable and lasting economic model that Molotov has never found in its five years of existence. It should be noted, however, that the ambitious company is showing financial losses ($ 103 million in the last quarter), but these are three times less than in 2020 ($ 302 million).
While some will see it as the passage of a French startup under the American flag, Molotov had been looking for a buyer for several years. Several French groups such as France Télévisions or Orange had come forward in recent years and Altice was close to getting their hands on Molotov in 2019.