White Brook Capital: FuboTV ($FUBO) Investment Case

In their Q3 2026 investor letter, White Brook Capital discusses FuboTV ($FUBO), a holding in its Ethical All-Cap strategy and the centerpiece of a new media-sector thesis. Portfolio Manager Basil Alsikafi says this is the first compelling sector-wide media opportunity he has seen since starting on the buy side more than twenty years ago. White Brook believes the internet giants that beat traditional media at its own game are now spending all their available cash on AI data centers, with Apple and Netflix the exceptions. In the firm’s view, this gives media companies an opening to re-win their core business, and it sees FuboTV as positioned to benefit.

Investment Highlight: FuboTV ($FUBO)

Industry Backdrop

• White Brook notes that cable companies are losing broadband subscribers to Starlink, other satellite providers and fixed-wireless offerings from telecom companies.
• According to the letter, media companies have mostly been separated from their conglomerates and consolidated. They now deliver content through their own apps and own the customer relationship directly.
• The firm observes that Google (YouTube TV), Amazon, Netflix and Apple competed aggressively in live TV and sports rights over the past five years. White Brook believes AI infrastructure spending is now their top priority.

Business Transformation

• White Brook says Fubo is no longer just a niche sports television service. In October 2025, Disney combined Hulu + Live TV with FuboTV and took an approximately 70% interest in the combined operations.
• Alisa Bowen, previously president of Disney+, became CEO in July 2026.
• The firm believes the combination gives Fubo more scale to spread operating costs and a more capable advertising sales operation.

Advertising and Profitability

• According to the letter, Disney’s advertising infrastructure is now integrated, and management reports better use of available ad space and higher ad prices.
• White Brook thinks these improvements can make an established subscriber base more profitable without rapid subscriber growth.
• The firm acknowledges that live TV distribution is a thin-margin business per subscriber. It believes that scale sufficient for premium advertising, not just programmatic ad fills, combined with competent management, should lead to durable cash flow.

Sports Positioning

• White Brook observes that Amazon, Netflix and Apple have acquired a growing share of rights to the four major sports. The firm notes that aggregate attention to those sports has plateaued over the past three years.
• According to the letter, niche sports such as pickleball, which has its own FuboTV channel, are gaining ground. The firm argues that exclusivity makes little sense for a niche sport seeking an audience.
• The firm highlights that FuboTV continues to carry local sports networks when competitors do not, which it sees as establishing a clear sports identity.
• White Brook believes this reputation, combined with Disney’s distribution and bundling power, could become valuable.

Financial Targets and Catalyst

• Management projects $90–100 million of pro forma adjusted EBITDA for fiscal 2026 and at least $300 million of adjusted EBITDA by fiscal 2028.
• Management expects positive free cash flow beginning in fiscal 2027.
• White Brook expects the market to notice once durable cash flow materializes, and believes the stock should re-rate.

White Brook Capital views FuboTV as a scaled live-TV and sports distributor that its Disney partnership has transformed, at a time when the firm believes Big Tech competitors are distracted by AI spending. The firm sees improved advertising monetization and Disney’s bundling power as able to lift profitability without rapid subscriber growth. It expects management’s path to $300 million-plus of adjusted EBITDA and positive free cash flow to eventually drive a re-rating, while acknowledging the thin per-subscriber economics of live TV distribution.

Click here for the full Pro Investor Letter.