Netflix -- volume alert -- shares drop 6% after Walt Disney (DIS) announces that it has agreed to acquire majority ownership of BAMTech, will end its distribution agreement with Netflix for subscription streaming of new releases (178.39 -2.97)
The Walt Disney Company (DIS) announced that it has agreed to acquire majority ownership of BAMTech, LLC and will launch its ESPN-branded multi-sport video streaming service in early 2018, followed by a new Disney-branded direct-to-consumer streaming service in 2019.
- Under terms of the transaction, Disney will pay $1.58 billion to acquire an additional 42% stake in BAMTech—a global leader in direct-to-consumer streaming technology and marketing services, data analytics, and commerce management—from MLBAM, the interactive media and Internet company of Major League Baseball. Disney previously acquired a 33% stake in BAMTech under an agreement that included an option to acquire a majority stake over several years, and today's announcement marks an acceleration of that timetable for controlling ownership.
- Disney will end its distribution agreement with Netflix for subscription streaming of new release