As rumored, Disney is acquiring one third of Major League Baseball's streaming company BAMTech. The $1 billion deal spins off BAMTech from MLB Advanced Media, MLB's umbrella digital business. Disney will pay the $1 billion in two installments—one now and one in January—and will have the option of becoming the majority owner.
BAMTech is also teaming up with ESPN to launch a direct-to-consumer subscription streaming service that will cover "live regional, national and international sporting events," according to Disney's statement.
The news of the acquisition was coupled with Disney's quarterly earnings release today, which exceeded analyst expectations and reported $14.28 billion in revenue—in large part due to the success of films like Finding Dory, Zootopia, and The Jungle Book. Revenue at Disney's film division, in particular, was $2.85 billion, up 40% from the same quarter last year. PM