Key facts
- Hearst will acquire Disney's 50% stake in A+E Global Media for $1.2 billion.
- The deal grants Hearst full ownership of the television and content business.
- Disney's divestment aligns with its strategy to prioritize streaming and ESPN.
- A+E Global Media operates television brands such as A&E, Lifetime, and The History Channel.
- The transaction is anticipated to conclude in September.
Privately held U.S. media conglomerate Hearst has agreed to acquire Disney's 50% stake in A+E Global Media for approximately $1.2 billion in cash, the companies announced Tuesday. This transaction will give Hearst full ownership of the television and content business.
Disney's decision to exit A+E follows its strategic focus on expanding its streaming services and ESPN, while reassessing the role of its traditional linear television assets amidst declining cable subscriptions.
The deal is expected to be finalized in September, after which A+E will operate as a wholly owned subsidiary within Hearst's entertainment group. A+E, formerly a 50-50 joint venture between Hearst and Disney, encompasses television brands including A&E, Lifetime, The History Channel, LMN, FYI, and Vice TV, reaching over 414 million households worldwide in 40 languages.
Following the acquisition, A+E plans to continue growing its content business across various platforms and international markets. Hearst CEO Steven Swartz stated that the company looks forward to supporting A+E's leadership in developing programming for its well-known brands. Hearst also holds an 18% stake in ESPN and has diverse interests in television, newspapers, magazines, financial services, and healthcare information.