Disney posts profit drop, to acquire BAMTech majority stake

Earnings Reuters

FILE - In this Monday, Feb. 1, 2016, file photo, Miss Piggy overlooks the New York Stock Exchange trading floor after ringing the opening bell to highlight Disney's "The Muppets" television show. Walt Disney reports financial results Tuesday, Aug. 9, ... 2016. (AP Photo/Richard Drew, File) (Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistribu)

Walt Disney Co reported a near 9 percent fall in quarterly profit, pulled down by higher programming costs and declining subscribers at its flagship sports channel ESPN.

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The company also said it would pay $1.58 billion to buy an additional 42 percent stake in video-streaming firm BAMTech. Last year, Disney said it was taking a 33 percent stake in BAMTech for $1 billion.

Disney also said on Tuesday that it would end its distribution agreement with Netflix Inc for subscription streaming of new releases, beginning with the 2019 calendar year theatrical slate.

The company's revenue fell marginally to $14.24 billion in the third quarter ended July 1 from $14.28 billion a year earlier.

Net income attributable to the company fell to $2.37 billion, or $1.51 per share, from $2.6 billion, or $1.59 per share.

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Savio D'Souza)

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