ESPN says its eCommerce brand will not go away as Amazon moves to acquire the streaming video company for $775 million.
The company has acquired the streaming company from the online retailer for $425 million in cash and stock, a person familiar with the matter told ESPN.
The person requested anonymity because the deal is confidential.ESPN, which has owned the streaming business since 2008, is one of several companies that have sold off their ecommerce assets in recent years.
It has not made any deals yet.
ESPN’s streaming business had a market value of $9.3 billion in the fourth quarter of 2016.
The company reported earnings on Tuesday.ESPN said Tuesday that the deal with Amazon will create a global ecommerce marketplace and ecommerce partner.
The deal includes a 50 percent stake in Amazon and a 20 percent stake each in ecommerce and streaming service Twitch.
It also includes an equity stake of 10 percent in Amazon’s parent company.