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Disney to acquire majority stake in BAMTech


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http://espnmediazone.com/us/press-releases/2017/08/the-walt-disney-company-to-acquire-majority-ownership-of-bamtech/

 

The Walt Disney Company (NYSE: DIS) today announced that it has agreed to acquire majority ownership of BAMTech, LLC and will launch its ESPN-branded multi-sport video streaming service in early 2018, followed by a new Disney-branded direct-to-consumer streaming service in 2019.

 

Under terms of the transaction, Disney will pay $1.58 billion to acquire an additional 42% stake in BAMTech—a global leader in direct-to-consumer streaming technology and marketing services, data analytics, and commerce management—from MLBAM, the interactive media and Internet company of Major League Baseball. Disney previously acquired a 33% stake in BAMTech under an agreement that included an option to acquire a majority stake over several years, and today’s announcement marks an acceleration of that timetable for controlling ownership.

 

“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,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “This acquisition and the launch of our direct-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.”

 

The ESPN-branded multi-sport service will offer a robust array of sports programming, featuring approximately 10,000 live regional, national, and international games and events a year, including Major League Baseball, National Hockey League, Major League Soccer, Grand Slam tennis, and college sports. Individual sport packages will also be available for purchase, including MLB.TV, NHL.TV and MLS Live.

 

Plans are for the Disney and ESPN streaming services to be available for purchase directly from Disney and ESPN, in app stores, and from authorized MVPDs.

 

“We’re very proud of the content distribution innovations driven by MLBAM and BAMTech over the past 15 years,” said Commissioner of Baseball Robert D. Manfred, Jr. “Major League Baseball will continue to work with Disney and ESPN to further grow BAMTech as it breaks new ground in technologies for consumers to access entertainment and sports programming.”

 

“This is an exciting validation of our team, its achievements and the customer-centric platform it’s built,” said Michael Paull, Chief Executive Officer of BAMTech. “Yet, we’ve merely scratched the surface of what can be accomplished in a future where we combine Disney and ESPN’s world-class IP and our proprietary direct-to-consumer ecosystem.”

 

The BAMTech transaction is subject to regulatory approval, and upon closing, Mr. Iger will serve as Chairman of the BAMTech Board. MLBAM and NHL will continue as minority stakeholders in BAMTech, with seats on the Board. Mr. Paull will report to Kevin A. Mayer, Senior Executive Vice President and Chief Strategy Officer, The Walt Disney Company. John Skipper, ESPN President and Co-Chairman, Disney Media Networks, will manage the new ESPN-branded service.

 

The BAMTech transaction is expected to be modestly dilutive to Disney’s earnings per share for two years. Additional dilution as the Company implements its direct-to-consumer strategy will be dependent on the Company’s licensing approach and the level of investment in original programming.

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I don't have the info in front of me, but I believe the NHL rights are up in a few years, and the rumor going around is that the mothership and the mouse might place a bid. This acquisition is likely only going to strengthen that speculation. All of that makes perfect sense considering how many hockey writers ESPN just canned. Smart. ;)

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I don't have the info in front of me, but I believe the NHL rights are up in a few years, and the rumor going around is that the mothership and the mouse might place a bid. This acquisition is likely only going to strengthen that speculation. All of that makes perfect sense considering how many hockey writers ESPN just canned. Smart. ;)

I want to see the NHL back on ESPN, 2 questions about it though:

 

1. How much of a back seat will the NHL take to College Sports, NFL, NBA and MLB on ESPN?

2. Will ESPN include the ABC network in any part of the hockey coverage (including the Stanley Cup Finals)?

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