Disney Announces Q3 Earnings Beat, To Buy $1.58 Billion Majority Stake In BAMTech

Walt Disney Co DIS reported a third-quarter earnings beat after Tuesday's close, but missed on sales estimates.

Disey reported Q3 earnings of $1.58 per share, beating estimates by 3 cents. The media giant missed sales estimates by $182 million after delivering $14.238 billion in revenue.

The company also announced it will buy a majority ownership in BAMTech for $1.58 billion. In the same quarter of last year, Disney announced a $1 billion stake in the streaming service.

"Today we announced a strategic shift in the way we distribute our content. The media landscape is increasingly defined by direct relationships between content creators and consumers, and our control of BAMTech's full array of innovative technology will give us the power to forge those connections, along with the flexibility to quickly adapt toshifts in the market," said Bob Iger, Chairman and CEO, The Walt Disney Company. "This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the Company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands."

Shares of Disney were down about 2.8 percent at $104.24 in after-hour trading.