The Walt Disney Company made a huge announcement this week. The company will be paying $1 billion for a 33% stake in BAMTech. BAMTech is the video streaming company that created Major League Baseball.
“Our investment in BAMTech gives us the technology infrastructure we need to quickly scale and monetize our streaming capabilities at ESPN and across our company,” said Disney CEO Bob Iger.
BAMTech’s clients next to baseball, include HBO Now, the National Hockey League, the PGA Tour and the WWE Network. As a result of the deal, BAMTech is also spinning out of MLB’s broader digital media business, MLB Advanced Media.
Disney says it will be working on its own streaming efforts with BAMTech.
The $1 billion payment will be broken into two installments. One will be made now and the other in January. Disney also has the option of acquiring a majority stake in BAMTech.
Disclaimer: We have no position in Walt Disney Co (NYSE: DIS) and have not been compensated for this article.