The technology arm of Major League Baseball — MLB Advanced Media — has a $600 million deal in place with the National Hockey League and is preparing to spin out into its own business valued at $3 billion.
Peter Kaftka at Re/code has the details of MLBAM’s big plans, which include a 6-year deal for media rights to the NHL’s digital properties. As a result, the NHL will take a 7 percent stake in MLBAM for $300 million, the Wall Street Journal reported.
MLBAM will take over the rights and distribution of out-of-market games and run NHL Network as a result of the deal.
“One of the most important things that any sports league or a commissioner of a sports league can do is make sure that you deliver to your fans your content, your games, in the best possible way,” NHL Commissioner Rob Manfred said in a statement. “We believe MLB Advanced Media has been a leader in this space, that we have developed creative ways to serve our fans in multiple platforms. And we think in partnership with the NHL we will provide that same technology, that same service that will be of benefits to NHL fans over the long haul.”
MLBAM has been growing over the past several years and powers the back-end online streaming technology for not just MLB, but big-name clients like ESPN, HBO, and WWE.
Re/code notes that the new spin-off will be called BAM Tech and the MLB will look to bring on additional strategic investors for the new entity. The Wall Street Journal surfaced the idea of a potential bundled streaming offering MLBAM could offer given its deals with hockey and professional golf.
You can read the full press release announcing the partnership here.