The Walt Disney Company officially locked in BAMTech to its portfolio, acquiring a 33% stake in the technology services and video streaming company. The deal will see BAMTech separated from MLBAM with Disney paying $1 billion in two installments for its share of the company with the option to acquire majority ownership in the coming years. BAMTech will become a “key partner for Disney in the delivery and support of streaming video and other digital products” and collaborate with ESPN to launch and distribute a new ESPN-branded multi-sport subscription streaming service in the future that will include live regional, national and international sporting events. Current content on ESPN’s linear networks will not appear on the new subscription streaming service. Meanwhile, the NHL receives a minority interest in BAMTech, as the result of a previous agreement.

“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 A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “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.”