The Walt Disney Company (DIS), who just last year acquired 33% of digital media darling BAMTech for $1 billion, has reached a deal to become the majority stakeholder in the company that will provide the infrastructure behind the media giant’s shift in to streaming. DIS announced it has picked up an option to purchase an additional 42% of the MLB Advanced Media spinoff for $1.58 billion. The technology, which currently acts as the backbone behind WatchESPN, will power ESPN’s newly announced OTT service, along with Disney’s ambitions to compete with Netflix (NFLX) in the streaming space.
Howie Long-Short: No surprise here. It was clear from the start that DIS sees BAMTech as the foundation for their digital sports platform going forward. Sure wasn’t cheap, but Disney has deep pockets.
Fan Marino: Each of the 30 MLB teams put up $4 million to develop BAMTech. It returned $50 million/team and collectively MLB and its teams still own 15% of the company. Not a bad ROI.