Disney posts profit drop, to take bigger stake in streaming firm BAMTech

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.

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.