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Disney buys stake in BAMTech to start ESPN streaming service

2016-08-10 08:37:00| Telecompaper Headlines

(Telecompaper) The Walt Disney Company has agreed to buy a 33 percent stake in BAMTech, an OTT video delivery platform, for USD 1 billion. Formed by the Major League Baseball league to help deliver its games to consumers online, BAMTech provides direct-to-consumer streaming services, data analytics and commerce management, with nearly 7.5 million total paid subscribers to its clients' OTT products. The Disney investment will provide capital to accelerate growth of its proprietary video-delivery platform. Under the terms of the transaction, Disney will pay USD 1 billion in two installments, now and in January 2017, and has the option to acquire majority ownership in the coming years. BAMTech will become a key partner for Disney and collaborate with ESPN to launch and distribute a new ESPN-branded multi-sport subscription streaming service.

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