Disney Pays $900 Million to Fully Acquire Streaming Tech Firm BAMTech
Disney buys out Major League Baseball's remaining 15% stake in BAMTech for $900 million, securing 100% ownership of the technology that powers Disney+. This deal marks one of the final major moves by former CEO Bob Chapek.
Disney pays $900 million to acquire Major League Baseball's remaining 15% stake in BAMTech, making the entertainment giant the 100% owner of the streaming technology company. The SEC filing reveals that MLB's stake is valued at $828 million in Disney's financial statements, but Disney pays a premium to finalize the buyout. This transaction grants Disney complete control over the critical infrastructure that powers Disney+ and its other consumer streaming services.
This acquisition likely stands as one of the final major business moves by outgoing CEO Bob Chapek, as the transaction takes place earlier in the month before Bob Iger returns to replace him as chief executive. Disney originally purchased a 33% stake in BAMTech for $1 billion in 2016, gradually increasing its ownership over the years before buying out the NHL's 10% stake in 2021. MLB originally founded the technology division in 2000 before spinning it off into BAMTech in 2015.
The purchase arrives just days before Disney+ launches its new ad-supported subscription tier to attract a wider audience. Disney+ currently boasts significant growth, adding 12 million subscribers in the third quarter of 2022 to reach a total of 164.2 million global subscribers. With full ownership of BAMTech now secured, Disney possesses complete autonomy over its streaming backbone as it navigates this crucial expansion phase.