Feds OK Disney’s Deal to Buy the Streaming Service BAMTech

Disney will soon own the company behind many popular streaming services including MLB.TV, HBO NOW, PlayStation Vue, WatchESPN, and WWE Network.

BAMTech is a powerhouse in the world of video streaming, providing the back end to many popular streaming services and is rumored to be the backbone for Disney’s new ESPN service launching in 2018 and the new Disney streaming service launching in 2019.

Disney has long owned part of BAMTech but recently started a deal to buy a majority stake in the company and share ownership with its partners MLB and the NHL.

The deal is rumored to be worth about $1.58 billion and gives Disney a 75% stake in the company. MLB will own 15% and the NHL will own 9%.

“The media landscape is increasingly defined by direct relationships between content creators and consumers, and our control of BAMTech’s full array of innovative technology will give us the power to forge those connections, along with the flexibility to quickly adapt to shifts in the market,” Disney Chairman Bob Iger said August 9 when the deal was announced. “[D]irect-to-consumer services mark an entirely new growth strategy for the Company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands.”

Disney has not stated its full plans after the deal closes but this will give Disney a huge stake in the world of streaming even if it is just on the back end.

Source: B&C 

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