Entertainment and media group The Walt Disney Company agreed yesterday to pay $1bn for a 33% stake in BamTech, an online video spinout of sporting organisation Major League Baseball (MLB).
BamTech’s technology powers online video streaming platforms and also provides features such as data analytics and commerce management. It has been spun out of MLB Advanced Media, Major League Baseball’s interactive media subsidiary.
The company’s clients, which include HBO Now, National Hockey League, Major League Baseball, PGA Tour and WWE Network, have collectively attracted almost 7.5 million paying subscribers to their offerings.
Disney, the parent company of sports media network ESPN, will pay part of the $1bn immediately and the rest in January 2017.
The deal gives Disney an option to take a majority stake in BamTech in the next two years, and National Hockey League will also acquire a stake in the platform due to a pre-existing agreement.
The investment will be used to expand BamTech’s video streaming technology and add new features. BamTech will also partner Disney on subscription services for subsidiaries including ESPN, which will launch a branded multi-sport streaming service, and Disney ABC Television Group.
Robert A. Iger, chairman and CEO of The Walt Disney Company, said: “Our investment in BamTech gives us the technology infrastructure we need to quickly scale and monetise our streaming capabilities at ESPN and across our 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.”