Disney has revealed it is acquiring a 33 per cent stake in BAMTech, the video streaming company created by Major League Baseball (MLB).
Under the deal, Disney is set to pay $1 billion in two instalments for the service, with the option to acquire majority ownership in the coming years.
The investment will provide Disney with the capital to grow its proprietary video-delivery platform, deliver greater flexibility to clients and develop new technologies and capabilities.
“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,” said Robert A. Iger, chairman and CEO of 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.”
BAMTech will now become a partner for Disney in the delivery and support of streaming video and other digital products from Disney/ABC Television Group and ESPN.
Robert D. Manfred, Jr., commissioner of baseball, added: “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 long-time partners at ESPN in the important and ever-changing area of content distribution.”