A streaming company is seeing shares spike Monday and actor Ryan Reynolds might be the reason behind the move. Here are the details.
What Happened: Ryan Reynold’s production company Maximum Effort announced a multi-year partnership with FuboTV Inc (NYSE: NYSE:FUBO) Monday.
The deal includes the launch of Maximum Effort Network, a linear channel on FuboTV and includes a blind scripted deal.
All advertising sales for the Maximum Effort channel will be managed by FuboTV as part of the deal.
“Maximum Effort’s mission is to bring people together in fun and unexpected ways and we think today’s announcement with Fubo will help do just that,” Reynolds said. “FuboTV has taken a fresh approach to developing and delivering content in the digital age and the entire team is passionate about thinking differently and taking chances.”
Reynolds said he was excited to see Maximum Effort gets its own network.
FuboTV CEO David Gandler praised the move as a way to improve the advertising potential for Maximum Effort and increase marketing relationships.
“Ryan is not only an A-list Hollywood star but also a serial entrepreneur with a stellar track record across sports, advertising, content and marketing,” Gandler said.
The CEO said Reynolds and Maximum Effort are demonstrating confidence in FuboTV and an “equity agreement” with stock trading higher than Monday’s price was created.
An SEC filing shows Maximum Effort received two million FUBO shares. The agreement also includes an issuance of up to $10,0000 shares of common stock determined by the “agreed upon $5 per share price,” with factors to consider of the price 10 days from now and the 30-day weighted average closing price.
Maximum Effort also received a warrant to acquire up to 166,667 shares of FUBO at an exercise price of $15 with an expiration date of Aug. 2, 2032. The warrant is based on FUBO shares hitting a volume-weighted average closing price of $30 within the next three years.
Related Link: Recap: FuboTV Q2 Earnings
Why It’s Important: Maximum Effort was co-founded by Reynolds and George Dewey in 2018. The name is based on a popular phrase from Reynolds’ Deadpool character. The company makes movies, television series and also advertisements.
Maximum Effort has served as a producer on “Deadpool 2” and “Free Guy,” both released by Walt Disney Co (NYSE: NYSE:DIS). The company also served as a producer on “The Adam Project,” which was released by Netflix Inc (NASDAQ: NASDAQ:NFLX).
Movies featuring Reynolds have performed well at the box office and helped boost viewership for streaming networks. Reynolds has starred in “The Adam Project,” “6 Underground” and “Red Notice” for Netflix over the last several years.
“The Adam Project” saw 92.43 million hours and 85.36 million hours viewed in its first two weeks on Netflix, respectively. The movie is one of the most viewed Netflix titles in the last two years. "Red Notice" was a previous record-breaking movie for Netflix and has been greenlit for a sequel.
A three-year first-look development deal signed between Maximum Effort and Paramount Pictures, a unit of Paramount Global (NASDAQ: PARA)(NASDAQ: PARAA), in May 2021 remains in place. Maximum Effort also has the release of “Spirited,” a retelling of “A Christmas Carol” starring Reynolds and Will Ferrell scheduled to be released on AppleTV+, part of Apple Inc (NASDAQ: NASDAQ:AAPL). A third Deadpool movie will also be co-produced by Maximum Effort.
Among the more famous advertisements put out by the ad arm of Maximum Effort include a Peloton (NASDAQ:PTON) Interactive Inc (NASDAQ: PTON) commercial starring Chris Meloni.
FuboTV ended the recent second quarter with 947,000 paid subscribers in North America and 347,000 paid subscribers in the rest of the world. The company’s North American segment revenue was up 65% year-over-year to $216.1 million.
FUBO Price Action: Fubo shares are up 10.09% to $3.82 on Monday.
Photo: DFree via Shutterstock
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga