Disney Acquires Remaining Stake in BAMTech Streaming Company for $900 Million

In a significant move, The Walt Disney Company has acquired the remaining 15% stake in the streaming firm BAMTech from Major League Baseball (MLB) for $900 million. This transaction makes Disney a 100% owner of the company that powers its popular streaming service, Disney+.

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Background on BAMTech

In 2000, MLB founded MLB Advanced Media to power its website and online streaming services. The division was later spun off as BAMTech in 2015. In 2016, Disney invested $1 billion for a 33% stake in BAMTech, and an additional $1.58 billion in 2017 to acquire a further 42% of the company.

Disney’s Increasing Stake

In 2021, the National Hockey League (NHL) sold its 10% stake in BAMTech to Disney for $350 million, propelling Disney’s stake to 85%. This acquisition marks another significant milestone in Disney’s expansion into the streaming industry.

Impact of the Acquisition

The acquisition has significant implications for Disney’s streaming services. With full ownership of BAMTech, Disney will have complete control over the technology and infrastructure that powers its streaming platforms. This move is expected to further enhance the company’s ability to deliver high-quality content to its subscribers.

Disney+ Subscriber Growth

In Q3 2022, Disney+ reported a significant increase in subscribers, adding 12 million new users to bring its total global subscriber base to 164.2 million. The ad-supported tier of Disney+, which is set to launch soon, is expected to further boost subscriber growth.

Bob Iger’s Return

The acquisition is also seen as one of the last major moves made by outgoing CEO Bob Chapek before his departure. Last week, it was announced that Bob Iger would be returning to the company as CEO to replace Chapek. In a filing with the SEC, Disney noted that Iger will initiate organizational and operating changes within the company to address the Board’s goals in the coming months.

Related Developments

This move comes days before the launch of Disney+’s ad-supported tier and is expected to further enhance the company’s streaming capabilities. With full ownership of BAMTech, Disney is well-positioned to continue its expansion into the streaming industry.

Key Points:

Disney has acquired the remaining 15% stake in BAMTech from MLB for $900 million.
This transaction makes Disney a 100% owner of the company that powers its popular streaming service, Disney+.
The acquisition is expected to further enhance Disney’s ability to deliver high-quality content to its subscribers.
With full ownership of BAMTech, Disney will have complete control over the technology and infrastructure that powers its streaming platforms.
Bob Iger has returned as CEO of Disney to replace outgoing CEO Bob Chapek.

About the Author

Ivan Mehta is a TechCrunch contributor who covers global consumer tech developments. He is based in India and has previously worked at publications including Huffington Post and The Next Web.