Disney to Buy Stake in MLB’s $3.5 Billion Streaming Video Unit

ESPN parent is in for one-third of Major League Baseball Advanced Media arm

FS1 MLB 2014

Disney has reportedly agreed to acquire one-third of MLB Advance Media’s video streaming unit — a deal ultimately valuing the pro baseball side business at around $3.5 billion.

The Walt Disney Co. will also have a four-year option to buy an additional 33 percent stake in the digital arm of Major League Baseball, according to Bloomberg.

MLB Advanced Media is jointly owned by the 30 baseball teams, so this would bring the clubs some usable cash.

The MLB tech services arm already powers many third-party live streaming services — in addition to its own baseball, of course — such as Disney’s ESPN3, the WWE Network, the NHL, the PGA Tour Live, 120 Sports, Glenn Beck‘s The Blaze and even HBO Now.

Shares of Disney (DIS) stock closed up yesterday, which is when the report initially broke. They’re also currently trading up a bit today.

Spokespeople from both Major League Baseball and ESPN declined TheWrap’s request for comment on the deal.