Disney buys stake in new company to help launch an ESPN streaming service

The Walt Disney Company has purchased a 33 percent stake in a video streaming company to help launch and ESPN branded subscription streaming service, Disney CEO Bob Iger announced during the company’s quarterly earnings meeting.

BAMTech was previously formed by Major League Baseball, but was later separated. 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, Iger said.

Commissioner of Baseball Robert D. Manfred, Jr. said in a news release,” We are excited to get to work with Disney and our longtime partners at ESPN in the important and ever-changing area of content distribution.”

The new ESPN-branded multi-sport subscription streaming service will be direct to consumer and feature content provided by both BAMTech and ESPN, including live regional, national and international sporting events, according to the news release.