Disney buys 33% of MLBAM

[Infield Infidel]

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.

The 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.

http://awfulannouncing.com/2016/disney-buys-33-percent-share-of-mlb-advanced-media-4-year-option-for-bigger-stake.html

 

[axx]

The $1B is nice, but I kind of wonder why MLB is selling.

 

[zenter]

Reading between the lines, sounds like it could be a version of the NYT-WaPo-IHT situation.

Disney expresses interest in a stake in MLBAM.
MLB laughs.
Disney says, "Okay, I guess we'll talk to TNT about future WatchESPN partnership. And we're really not sure if it's worth bidding for baseball."
MLB, "You misunderstand... We totally, uhh, want to sell you a stake."

 

[Lose Remerswaal]

The $1B is nice, but I kind of wonder why MLB is selling.

I'm guessing the first thing the new owners will do is remove all references to Mike Greenwell

 

[GeorgeCostanza]

I'm guessing the first thing the new owners will do is remove all references to Mike Greenwell

Oh duh. The gator. I get it.