Einhorn's Greenlight Capital Was Early Investor in fuboTV Inc. (FUBO), Says Co. More Like Video Game Cos.

Greenlight Captial's David Einhorn disclosed that fuboTV Inc. (NYSE: FUBO) was a private investment for the firm that is now public and has led to significant gains.

Einhorn said the firm's average effective price (they owned shares and warrants) was $5, per share. Since going public at $10 per share in October, shares ended the year at $28 and are currently at $34.

The hedge fund manager said while bears contend that the sports wagering market is small and FUBO "won’t be able to compete with established books like William Hill or Caesars Entertainment," they perceive the "integrated opportunity to be qualitatively different."

He explains: "What if you could bet 1:2 on whether Giannis will make the next free throw, 1:3 on whether Jacob deGrom’s next pitch will be a strike or 20:1 that Aaron Judge will homer on the next at bat? One could even bet on whether Tiger will make his next putt or whether Nadal’s next serve will be an ace. Suddenly, watching sports goes from being a passive experience to a highly engaging, active one. Higher engagement leads to higher ad revenues and the ability to make other in-app sales to players. We expect the software to launch in 2021, initially for play money and later with the benefit of regulatory licenses for real money."

Einhorn said they think the right comparison to fuboTV bill will to video gaming companies such as Take-Two Interactive Software (NASDAQ: TTWO) or Activision Blizzard (NASDAQ: ATVI) rather than other over-the-top (OTT) video providers.

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