Disney Buys The Last Of MLB's Stake In BAMTech Streaming Division For $900 Million

Disney revealed in an SEC filing on Tuesday that it had paid Major League Baseball (MLB) $900 million earlier this month to acquire the league’s final 15% ownership in BAMTech.

The streaming technology services provider BAMTech, which runs Disney+ and the other direct-to-consumer services offered by the media company, is now 100% owned by Disney.

Disney Buys The Last Of MLB’s Stake In BAMTech Streaming Division For $900 Million

Disney now fully owns the streaming technology services business that provides Disney Plus, Hulu, and other direct-to-consumer services after acquiring Major League Baseball’s (MLB) 15% interest. Before shifting its focus to streaming, the business, now known as Disney Streaming, was founded in 2000 as MLB Advanced Media to manage the league’s online operations and its MLB.com Web site. At the time, BAMTech was the name of the streaming division.

Disney this month has paid MLB $900 million for the remaining 15% of BAMTech it didn't already own following a series of prior deals. So when your favorite team cries poor this winter, keep in mind they're each due another $30 million windfall from this.

— Eric Fisher (@AEricFisher) November 29, 2022

Disney started showing interest in the business in 2016 with a $1 billion investment, giving them a 33% stake with the opportunity to increase its ownership over time. A year later, it paid an additional $1.58 billion for 75%, and last year, the company bought the National Hockey League’s 10% stake for $350 million.

Surprise! Disney cut a $900M deal this month, buying out Major League Baseball's remaining stake in streaming company BAMTech. https://t.co/uZFZjVjsO6

— Alex Weprin (@alexweprin) November 29, 2022

When the company’s board of directors unexpectedly decided to fire CEO Bob Chapek and replace him with previous CEO Bob Iger, the transaction was finished in November. According to the board, Iger will hold the position for two years in order to “establish the strategic path for renewed growth.”

Iger will “initiate organizational and operating reforms inside the Company to achieve the Board’s priorities,” according to Disney’s filing, in the upcoming months.

Disney Buys Out MLB’s Remaining 15% Stake in BAMTech Streaming Division for $900 Million https://t.co/JFBBBBve0W

— Variety (@Variety) November 29, 2022

The change is being made just days before Disney+’s ad-supported tier is scheduled to debut. With a total of 164.2 million customers worldwide as of Q3 2022, the streaming service saw a growth of 12 million subscribers.