Brands
Hearst buys Disney’s A+E stake in $1.2 billion deal, takes full control
Disney sharpens streaming focus as Hearst becomes sole owner of A+E Global Media
New York: Hearst has agreed to acquire The Walt Disney Company’s 50 per cent stake in A+E Global Media for about $1.2 billion in cash, giving the privately held media company full ownership of the television and content business, according to a Reuters report.
The transaction, announced on Tuesday, is expected to close in September, after which A+E Global Media will operate as a wholly owned business within Hearst’s entertainment division.
Disney’s exit comes as the entertainment giant continues to reshape its portfolio around streaming services and ESPN, while reassessing the role of traditional linear television assets amid a steady decline in cable television subscriptions.
A+E Global Media was previously owned equally by Disney and Hearst. The company operates a portfolio of television brands including A&E, Lifetime, History Channel, LMN, FYI and Vice TV, reaching more than 414 million households across 200 territories in 40 languages.
A+E Global Media, president and chairman, Paul Buccieri said the company would continue expanding its content business across multiple platforms and international markets following the change in ownership.
Hearst, chief executive officer, Steven Swartz said the company looked forward to supporting Buccieri and the leadership team as they continued to build programming around the History, Lifetime and A&E brands.
For Disney, the sale marks another step in its strategy of concentrating investment on higher-growth businesses, particularly direct-to-consumer streaming and sports media, while reducing exposure to legacy television operations.
Hearst, meanwhile, deepens its presence in the entertainment business. Beyond its television assets, the privately held company owns newspapers, magazines, healthcare information businesses, financial services operations and an 18 per cent stake in ESPN.
The deal reflects a broader shift sweeping the media industry, with legacy broadcasters increasingly redrawing their portfolios as streaming reshapes where audiences watch and how media companies invest.
