As reported by Bloomberg’s Scott Soshnick and Christopher Palmeri, Walt Disney Co. has purchased a one-third stake in MLB’s streaming video operation, BAM Tech, which might eventually lead to a spinoff into a separate company. The entire venture is valued at $3.5 billion and Disney has a four-year option to purchase another 33 percent of MLBAM.
http://awfulannouncing.com/2016/disney-buys-33-percent-share-of-mlb-advanced-media-4-year-option-for-bigger-stake.htmlThe two companies already had a working relationship, as MLB Advanced Media runs ESPN’s WatchESPN streaming arm.So this is seemingly a natural next step. This deal is surely geared toward building a more robust streaming product (particularly in offering sports and events that might not have a place in ESPN’s on-air schedule) to attract and keep subscribers who have turned their back on cable and satellite providers.