Walt Disney Company has acquired a 33% stake in BAMTech, a technology services and video streaming company previously formed by Major League Baseball (MLB).
As part of the deal, BAMTech has been separated from MLB’s broader digital business, MLB Advanced Media (MLBAM). Disney will pay $1 billion in two instalments between now and in January 2017, and has the option to secure majority ownership in the coming years.
According to Disney, its investment in BAMTech – already a global leader in direct-to-consumer streaming services, data analytics and commerce management, with nearly 7.5 million total paid subscribers to its clients’ OTT products – will provide capital to accelerate growth of its proprietary video-delivery platform, deliver greater flexibility to clients and develop new technologies and capabilities.
It adds that 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. It 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.
