The Walt Disney Company is acquiring a 33 percent stake in BAMTech, a technology services and video streaming company previously formed by Major League Baseball (MLB). As part of the transaction, BAMTech was separated from MLB’s broader digital business, MLB Advanced Media (MLBAM). Under the terms of the transaction, Disney will pay USD 1 billion in two installments, now and in January 2017, and has the option to acquire majority ownership in the coming years.
BAMTech provides direct-to-consumer streaming services, data analytics and commerce management. The company reports nearly 7.5 million total paid subscribers to its clients’ OTT products. Disney’s investment in BAMTech is expected to provide capital to accelerate growth of its video-delivery platform, deliver increased flexibility to clients and develop new technologies and capabilities.
As part of the transaction, BAMTech will become a key partner for Disney in the delivery and support of streaming video and other digital products from Disney|ABC Television Group and ESPN, as well as future digital initiatives across the company.
BAMTech will also collaborate with ESPN to launch and distribute a new ESPN-branded multi-sport subscription streaming service in the future. The direct-to-consumer service will feature content provided by both BAMTech and ESPN, and include live regional, national and international sporting events.
Current content on ESPN’s linear networks will not appear on the new subscription streaming service. More details about the new service are expected to be released in the months ahead.
