MLB Advanced Media executives have been charged to “move with all deliberate speed” to pursue a spinoff for its fast-growing business powering digital video streaming for third parties, and a deal could happen by the end of the year.
During a meeting of MLB’s newly created business and media board of directors last month in New York, MLBAM executives presented a series of investment options for the third-party business. A formal vote was not taken, but the panel, chaired by Kansas City Royals owner David Glass, gave a clear sign to move as quickly as possible toward a deal with a strategic partner.
“There was a strong preference for a strategic partner versus somebody just financial,” said Bob Bowman, MLB president of business and media. “The idea is to position the third-party business in the best way to optimize its growth potential, and the feedback we received from the board was entirely confirmatory of what we’ve been working on.”
Bowman said there are roughly two dozen potential such strategic partners, though he declined to specify any individual candidates. A spinoff of the third-party part of MLBAM would carry a valuation of at least several billion dollars, industry sources said.
MLBAM’s third-party business generates more than $100 million in annual revenue and services major entities such as HBO, Turner Sports, ESPN, Sony, the WWE and the PGA Tour. The business and media board will meet again formally during the next set of MLB owners meetings slated for August in Chicago, but developments could occur before then.
“It’s possible we could have further progress even before August,” said Larry Baer, San Francisco Giants president and chief executive, and a member of the business and media board. “The great thing is we are blessed with a lot of good options. The outlook for not only this third-party business, but also MLBAM’s core baseball business, is very healthy.”
