Why FuboTV Stock Is Up 30% This Week

The shareholders of FuboTV (FUBO -1.98%) stock have a banner week. After some big news last Friday, the stock has been up all week as the company helps explain the impact of a big courtroom win.

Fubo shares rose as much as 38% at their peak this week. By the last day of trading, shares were still up 29.4% for the week, according to data from S&P Global Market Intelligence.

That growth helped ease the pain for long-term shareholders. Even with this week’s spike, shares of the sports-oriented streaming service are down about 37% year-to-date.

Fubo wins the first battle

The future started to look bleak for Fubo when three major streaming media players announced plans for a new sports-oriented joint venture (JV) service. The Walt Disney Company (DIS -0.88%), Fox Corp. (FOX 0.89%)and The discovery of Warner Bros (WBD -2.34%) recently announced plans for new Venu Sports JV.

This joint venture could be a crushing blow to Fubo as it tries to increase revenue and gain profitability from sports-oriented subscribers. Last Friday, however, a judge granted Fubo’s request for a preliminary injunction against the plan proposed by the three media giants.

Fubo CEO and co-founder David Gandler said:

(The ruling) is a win not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive market with more sports streaming options.

According to the partners, the proposed JV would control approximately 60%-80% of live sports content. This would likely significantly reduce Fubo’s customer base. Although Fubo has grown revenue and subscriber numbers over the past year, it hasn’t been a steady growth.

In the wake of the judge’s decision, Fubo’s CEO spent some of his time this week trying to rally consumer support. In an interview with CNBC on Monday, he argued that the proposed deal “deprived consumers of choice.” It would also likely be a dagger in Fubo’s path to success. Investors are now betting that the JV itself is dead.