The Walt Disney Company is said to be nearing the completion of a deal to acquire a 33 percent stake in the video streaming division of Major League Baseball Advanced Media, in an agreement that will value the business at about $3.5 billion.
According to sources, there has so far been no official finalization on the deal between Disney and the MLB. However, upon the closing of the agreement, it is said that Disney will be given the option to acquire another 33 percent stake in MLBAM's BAM Tech over the coming four years.
Disney and the MLB have not issued comments regarding the matter.
The deal is not yet official, and as such there is no official announcement on how Disney would utilize the stake in BAM Tech in relation with its streaming services. Some sources familiar with the deal and the streaming content industry, however, predict that Disney will be using BAM Tech to provide a much needed boost to the streaming offerings of ESPN.
"MLBAM has some great assets that could help ESPN build a robust over-the-top offering," said New York-based media consultant Bernard Gershon regarding the proposed acquisition.
Disney, which also owns ESPN and ABC, is said to be struggling with the viewing numbers of ESPN's traditional broadcast, as users largely prefer to watch their programs through web-only and streaming packages.
There is the WatchESPN option, which allows viewers to stream broadcasts of live sports events through certain platforms such as Apple TV as long as they are subscribers to a cable package that includes ESPN. However, with its interest in BAM Tech, the company is seemingly looking to bolster its capabilities and provide more options to viewers.
Last year, MLBAM revealed plans of spinning off BAM Tech to become an independent company, with MLB and certain investors to own stakes in the new entity. MLBAM has been considered as a leader in the sports video streaming industry, with the MLB being the first major sports league to offer live streaming of its non-local team games for viewers who do not have cable subscriptions.
In other news, Disney has just recently launched a family-friendly app that serves as a child-focused social media platform, where kids can watch and share content in the form of short videos.
While Disney's ESPN offerings are for adults, Disney LOL will feature curated content that is appropriate and safe for children, and they can watch it while the grownups cheer for their favorite sports teams.
