Disney Said to Buy Stake in MLB's Video-Streaming Business
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Walt Disney agreed to acquire a one-third stake in the video-streaming unit of MLB Advanced Media, in a deal that values the business at about $3.5 billion, according to a person familiar with the matter.
Disney, the owner of ESPN and ABC, will also obtain a four-year option to buy an additional 33% stake in the digital arm of Major League Baseball, said the person, who asked not to be identified because the information isn’t public. WME-IMG, the parent of William Morris Endeavor and the owner of media properties including the Miami Open tennis tournament, was among the bidders for a stake in the business, the person said. A final accord hasn’t been executed.
The deal underscores the importance of the video-streaming business to the future of ESPN, which has been losing viewers and advertising dollars to online media. ESPN has toyed with the idea of selling web-only packages outside of the traditional cable-TV package, and Disney Chief Executive Officer Robert Iger is making deals to offer ESPN on internet services such as Sling TV.
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