The Walt Disney Company Acquires Minority Stake in BAMTech
August 09 2016 - 4:15PM
Business Wire
Disney Investment will Accelerate Growth of
Leading Technology and Direct-To-Consumer Video Streaming
Company
BAMTech will Enhance Digital Delivery of
Disney, ESPN and ABC Programming
New ESPN-Branded Multi-Sport
Direct-To-Consumer Service to be Launched
The Walt Disney Company (NYSE: DIS) today announced that it is
acquiring a 33% stake in BAMTech, a leading 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 $1 billion
in two installments, now and in January 2017, and has the option to
acquire majority ownership in the coming years.
Disney’s 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.
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.
“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 Robert A. Iger,
Chairman and Chief Executive Officer, The Walt Disney Company. “We
look forward to working closely with BAMTech as we explore new ways
to deliver the unmatched content of The Walt Disney Company across
a variety of platforms.”
Commissioner of Baseball Robert D. Manfred, Jr. stated, “Every
day the powerful partnership of technology and content becomes more
important to consumers. We are excited to get to work with Disney
and our longtime partners at ESPN in the important and
ever-changing area of content distribution.”
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 will be announced in the months ahead.
“Bringing a multi-sport service directly to fans is an exciting
opportunity that capitalizes on BAMTech’s premier digital
distribution platform and continues ESPN’s heritage of embracing
technology to create new ways to connect fans with sports,” said
John Skipper, ESPN President and Co-Chair, Disney Media Networks.
“As WatchESPN continues to grow and add value to the multichannel
video subscription, this new service will be an outstanding
complement.”
Following Disney’s acquisition of a stake in BAMTech, the
National Hockey League received a minority interest in BAMTech, as
the result of a previous agreement.
About BAMTech
BAMTech grew out of MLBAM, the interactive media and Internet
company of Major League Baseball. Since it was founded in 2000,
MLBAM has been an award-winning digital business at the forefront
of the digital revolution in delivering world-class experiences and
distributed content through all forms of interactive
media. Its proprietary technology provides direct-to-consumer
video solutions, especially for live events with high viewership,
offering viewers high-quality visuals anytime, on any device. Its
video platform back-end technology provides flexibility to
personalize and enhance content-viewing experiences and is capable
of serving live content to tens of millions of consumers around the
world. BAMTech’s growing roster of sports, news and entertainment
clients includes HBO NOW, the National Hockey League, Major League
Baseball, the PGA TOUR, WWE Network and Ice Network (the leading
digital platform for professional figure skating).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160809006274/en/
The Walt Disney CompanyZenia Mucha, zenia.mucha@disney.com, 818
560 5300David Jefferson, david.j.jefferson@disney.com, 818 560
4832orESPNPaul Melvin, paul.melvin@espn.com, 860 766
5069orBAMTech/MLBAMMatt Gould, matthew.gould@mlb.com, 212 485
8959
Walt Disney (NYSE:DIS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Walt Disney (NYSE:DIS)
Historical Stock Chart
From Sep 2023 to Sep 2024