Discontinued Operations

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Dissolution of Fubo Gaming

As discussed in Note 1, on October 17, 2022, the Company dissolved its wholly owned subsidiary Fubo Gaming Inc. ("Fubo Gaming"). In connection with the dissolution of Fubo Gaming, the Company concurrently ceased operation of Fubo Sportsbook.

Net income (loss) from Fubo Gaming's discontinued operations consists of the following for the years ended December 31, 2023 and 2022 (in thousands):

	Years Ended December 31,
	2023		2022		2021
Revenues
Wagering	$	—	$	(759)	$	(20)
Total revenues	—		(759)		(20)
Operating expenses
Sales and marketing	(59)		9,976		6,667
Technology and development	17		9,220		5,095
General and administrative	1,370		28,481		19,146
Depreciation and amortization	158		433		215
Gain on extinguishment and remeasurement of certain liabilities	(6,671)		—		—
Impairment of goodwill, intangible assets, and other long-lived assets, net	—		87,365		—
Total operating expenses	(5,185)		135,475		31,123
Operating income (loss)	5,185		(136,234)		(31,143)
Other income (expense)
Interest expense	—		(598)		—
Other income (expense)	—		(42)		(34)
Total other expense	—		(640)		(34)
Net income (loss) from discontinued operations before income taxes	5,185		(136,874)		(31,177)
Income tax benefit	—		—		—
Net income (loss) from discontinued operations	$	5,185	$	(136,874)	$	(31,177)

During the year ended December 31, 2023, the Company recorded a $6.7 million gain on extinguishment and remeasurement of certain liabilities.

During the year ended December 31, 2022 the Company incurred non-cash impairment charges totaling $87.4 million primarily consisting of prepaid market access agreements, intangible assets and goodwill.

Included in the table above, during the years ended December 31, 2022 and 2021, the Company recorded $15.9 million and $10.6 million, respectively, of stock-based compensation expense. There was no stock-based compensation expense recorded during the year ended December 31, 2023 pertaining to Fubo Gaming.

During the year ended December 31, 2022, the Company incurred certain immaterial charges in connection with the dissolution, primarily related to severance and other employee-related costs.

The carrying amounts of the major classes of assets and liabilities classified as discontinued operations as of December 31, 2023 and 2022 are as follows (in thousands):

	December 31,
	2023		2022
ASSETS
Current assets
Cash and cash equivalents	$	462	$	3,277
Prepaid and other current assets	—		1,366
Total assets - discontinued operations	$	462	$	4,643
LIABILITIES
Current liabilities
Accounts payable	$	2,195	$	4,347
Accrued expenses and other current liabilities	17,413		25,787
Lease liabilities	—		2,447
Total liabilities - discontinued operations	$	19,608	$	32,581

As of December 31, 2023 and 2022, the Company's accrued expenses and other current liabilities of its discontinued operations included $17.4 million and $24.7 million, respectively, primarily related to contract termination costs.