v3.26.1
Business Combination
 9 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combination Business Combination
The consummation of the Business Combination described in Note 1 has been accounted for as a reverse acquisition using the acquisition method of accounting in accordance with the guidance of ASC 805, Business Combinations (“ASC 805”). ASC 805 requires that one of the combining entities be designated as the acquirer for accounting purposes. The Hulu Live Business has been determined to be the accounting acquirer. In identifying the Hulu Live Business as the accounting acquirer, management took into account the structure of the Business Combination, including the relative voting rights and the corporate governance structure of the combined company as of the Closing Date, the composition of Fubo’s board of directors and designation of certain senior management positions. The purchase price has been allocated to the fair value of the historical Fubo business's identifiable assets and liabilities as of the Closing Date, with the excess purchase price recorded as goodwill.
Consideration Transferred
The fair value of the consideration transferred in the reverse acquisition on the Closing Date was $1,347.6 million, which consists of 28,560,344 shares of the Company’s Class A Common Stock valued at $1,264.7 million and equity awards attributed to pre-combination services valued at $82.9 million.
Allocation of Purchase Price
The purchase price is allocated to the legacy Fubo assets acquired and liabilities assumed based on their estimated fair values on the Closing Date, with any excess purchase price recorded as goodwill.
The following table summarizes the final purchase price allocation to the identifiable assets acquired and liabilities assumed as of the Closing Date (in thousands):
Fair value of consideration transferred$1,347,599 
Estimated fair value of assets acquired and liabilities assumed:
Cash and cash equivalents261,909 
Accounts receivable, net77,715 
Prepaid sports rights25,978 
Prepaid and other current assets19,569 
Property and equipment5,698 
Restricted cash6,148 
Intangible assets456,193 
Right-of-use assets34,301 
Other non-current assets11,816 
Accounts payable, accrued expenses, and other current liabilities(340,072)
Deferred revenue(99,575)
Convertible notes - current(144,765)
Long-term borrowings - current portion(696)
Lease liabilities - current
(2,799)
Convertible notes - non-current
(237,379)
Deferred tax liabilities
(1,211)
Lease liabilities - non-current
(31,502)
Other long-term liabilities(11,977)
Total estimated fair value of net assets acquired29,351 
Estimated goodwill1,318,248 
The fair values of the intangible assets acquired were determined using the income and cost approaches. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent Level 3 measurements as defined in ASC 820. The relief from royalty method was used to value the software and technology and trade names. The relief from royalty method is an application of the income method and estimates fair value for an asset based on the expected cost to license a similar asset from a third-party. Projected cash flows are discounted at a required rate of return that reflects the relative risk of achieving the cash flow and the time value of money. The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used for customer relationships. The cost to replace a given asset reflects the estimated reproduction or replacement cost for these customer related assets.
Supplemental Pro Forma Financial Information
The following table presents the unaudited pro forma results of operations as if the Business Combination had occurred as of October 1, 2024:
Three Months EndedNine Months Ended
June 28, 2025June 30, 2026June 28, 2025
Pro forma revenue
$1,483,785 $4,738,701 $4,636,540 
Pro forma net (loss) income
$(71,970)$(78,305)$(81,773)
The pro forma information is based on the historical combined carve-out financial statements of the Hulu Live Business and historical consolidated financial statements of Fubo, with adjustments directly attributable to the Business Combination, including the impact of the various commercial arrangements entered into in connection therewith, such as the wholesale fee arrangement, marketing support charge, brand license fee and advertising agency fee, as well as the incremental intangible asset amortization to be incurred based on the fair values and useful lives of each identifiable intangible asset of the Fubo business.