Published 11/30/2022, 10:55 AM EST
The MLBAM founded BAMTech Media in 2015 to provide streaming technology to over-the-top platforms. MLB owned 90% of the platform and the NHL owned a 10% minority stake. The ownership structure of BAMTech media has changed multiple times over the years. In 2016, Walt Disney bought 33% of BAMTech for $1 billion with an option to buy a majority stake later.
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Disney took this option in August 2017 and enlarged its ownership stake in BAMTech to 75% for $1.58 billion. Then in the last year, they bought out the NHL’s 10% stake in BAMTech for $350 million, taking their ownership stake to 85%. And in recent reports, it looks like the ownership structure of BAMTech has once again changed.
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Disney has taken full control of BAMTech from the MLB
According to reports, Disney has bought the remaining 15% of BAMTech from MLB and has full control of the company. Eric Fisher, the U.S. Editor for SportBusiness Group, confirmed this in a Tweet. Fischer said that Disney had bought the 15% of BAMTech that MLB owned for $900 million.
Fisher’s tweet read “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.”
In a reply to his Tweet, Fischer even detailed the sequence of events leading to Disney buying BAMTech.
Disney buying the remaining 15% comes as no real surprise. When they bought the NHL’s minority share recently, reports surfaced that they’d come back to buy the remaining 15%. Those reports have now been proven true.
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The second sentence of Fischer’s initial tweet was interesting as it highlighted a very important fact. MLB team owners are going to make a lot of money from this deal and it will give them no excuse when it comes to signing free agents this offseason.
What is BAMTech called now?
Shortly after Disney acquired their 75% stake in BAMTech, they brought it under their company and renamed it Disney Streaming Services. And in 2021, shortly before buying the NHL’s minority stake, it was shortened to Disney Streaming. The name has since remained the same and there have been no reports of a further change.
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Although many are wondering why the MLB was so keen to sell BAMTech, they made a lot of money from the sale. Do you think MLB team owners will use what they get from BAMTech’s sale to improve their roster?