Disney now owns 100% of BAMTech, the streaming technology services group that powers Disney+ and the media company’s other direct-to-consumer services.
Earlier this month, Disney paid $900 million to Major League Baseball to buy out the league’s remaining 15% stake in BAMTech, the media conglomerate disclosed in an SEC filing Tuesday.
In 2016, Disney made a $1 billion investment in BAMTech, giving it a 33% stake, and then a year later paid an additional $1.58 billion to hold a 75% stake. In August 2021, the NHL opted to sell its 10% interest in BAMTech to Disney for $350 million. As of Oct. 1, 2022, MLB’s 15% interest in BAMTech was recorded in Disney’s financial statements at $828 million.
MLB created the precursor to BAMTech in 2000 with MLB Advanced Media. That year, the league began streaming live video online with its MLB.TV service — years before YouTube was a glimmer in Google’s eye. In 2015, Major League Baseball spun off the streaming-technology division as BAMTech, setting up the eventual takeover by Disney.
Disney’s full ownership of BAMTech comes as the company’s surprise Nov. 20 announcement that Bob Iger would return as CEO, with the board ousting former chief exec Bob Chapek after less than three years. Iger has a mandate from Disney’s board “to set the strategic direction for renewed growth.”
Also in Disney’s 10-K filing Tuesday, the company said “we anticipate that within the coming months Mr. Iger will initiate organizational and operating changes within the company to address the board’s goals.”
“While the plans are in early stages, changes in our structure and operations, including within DMED (and including possibly our distribution approach and the businesses/distribution platforms selected for the initial distribution of content), can be expected. The restructuring and change in business strategy, once determined, could result in impairment charges,” Disney said in the filing.