The Walt Disney media company is reportedly in advanced talks to acquire an equity stake in BAM Tech, the video technology business of MLB Advanced Media, the interactive media and internet company of Major League Baseball.
MLBAM, which is jointly owned by MLB’s 30 teams, runs the North American league’s web video subscription service and has been seeking to spin BAM Tech off into a separate company for some time.
The Re/code website, citing people familiar with the proposed deal, said talks are at an advanced stage but could still fall apart. Disney is said to be one of multiple bidders who want to invest in MLBAM.
MLBAM commenced operations as the arm through which MLB began streaming out-of-market baseball games to subscribers. It has since grown to offer similar services to the likes of the NHL ice hockey league, golf’s PGA Tour and college basketball showpiece March Madness.
MLBAM has aided the launch of the WWE wrestling organisation’s WWE Network and sports broadcaster ESPN’s WatchESPN service, while it has also helped to deliver online pay-television services for HBO and Sony.
Disney owns ESPN and Re/code said its interest in BAM Tech is an indicator that it wants to own the technology to help it power direct-to-consumer video services.