Walt Disney has acquired a 33 per cent stake in technology services and video streaming company BAMTech.
Disney will pay $1 billion in two installments, now and in January 2017, and has the option to acquire majority ownership ‘in the coming years’.
The investment in BAMTech - which holds nearly 7.5 million total paid subscribers to its clients’ OTT products – is designed to provide capital to accelerate growth of Disney’s proprietary video-delivery platform.
It also hopes to “deliver greater flexibility to clients and develop new technologies and capabilities.”
“Our investment in BAMTech gives us the technology infrastructure we need to quickly scale and monetize our streaming capabilities at ESPN and across our company,” said Robert Iger, Walt Disney chairman and CEO.
“We look forward to working closely with BAMTech as we explore new ways to deliver the unmatched content of the Walt Disney Company across a variety of platforms.”