Shares of Disney jumped at the open on Wednesday following news that it is combating slow subscriber growth with a $1 billion investment to acquire a 33 percent stake in sports-streaming service BamTech.
Disney shares have fallen more than 10 percent in the past year over concerns about Disney's growth, as more customers are cutting the cord on its ESPN cable service. BamTech was created by Major League Baseball.
The media giant intends to launch a new digital service that will be separate from its current cable offering. However, Elevation Partners co-founder Roger McNamee said the transition for Disney could be a difficult one.
"I think this was a really smart move for Disney," McNamee said. "I think the situation Disney faces today is a little bit like the one that Apple faces for the iPhone; that when you have been magnificently successful — more successful than your competitors — it is often hard to come up with a second act that makes for a smooth transition."