Disney as part of its Q3 report on Tuesday afternoon announced its deal for a 33% stake in Bam Tech, and since the markets opened yesterday morning, the stock price has jumped 2%, from $96.20 to $98.17 (THE DAILY). In N.Y., Jennifer Saba wrote Disney Chair & CEO Bob Iger with the announcement of the BAM Tech deal "finally got back to playing offense" in the TV space almost a year after being "on the back foot over cord-cutting." This move "helps Disney take a step into the future." The investment in BAM Tech "acknowledges in more than mere words that consumer habits are changing in a move that should strengthen and accelerate its streaming options." Iger has "won acclaim for big acquisitions" like Marvel and LucasFilm, but he may yet come to find that "less-sexy internet plumbing can deliver as much value as attention-grabbing characters" (NYTIMES.com, 8/10). BARRON'S Johanna Bennett wrote investors have long wondered how Iger "planned to tackle the unraveling of the cable bundle," and with the BAM Tech deal, they "got an answer -- and it looks like a home run." The investment is "a big step for Disney" in "addressing a key problem facing its future." Smead Capital Management Head of Research Tony Scherrer said, "This is a meaningful first major step." Macquarie analyst Tim Nollen said, "The problem isn't solved yet, but ... we think Disney owning this technology gives it the ideal mechanism to offset cord-cutting at ESPN, and across its networks." Bennett wrote BAM Tech "is not an immediate fix," but it "gives Disney a stake in a proprietary streaming platform already used by HBO." Cannibalization is "not a risk for ESPN either," and the move "makes strategic sense" (BARRONS.com, 8/10).
