NEW YORK—Hearst has announced a deal with subsidiaries of The Walt Disney Company to acquire Disney’s 50% interest in A+E Global Media for approximately $1.2 billion in cash.
The transaction is expected to close in September, at which point A+E Global Media will become a wholly owned Hearst business within its Entertainment group.
A+E Global Media, launched as A&E (the Arts & Entertainment Network) in 1984, today reaches more than 414 million households across 200 territories in 40 languages. It's brands include A&E, Lifetime, The History Channel, LMN, FYI and Vice TV.
The deal reduces Disney's exposure to the declining cable network sector, which has been buffeted by cord cutting and will give Hearst greater control over A+E, which in recent years has been working to diversify its revenue streams.
“We thank our Disney colleagues for decades of successful partnership,” said Steven R. Swartz, president and CEO of Hearst. “We look forward to supporting Paul Buccieri and A+E Global Media’s leadership team as they continue to make must-see programs and innovate around the great History, Lifetime and A&E brands.”
Paul Buccieri, president and chairman of A+E Global Media will continue to run A+E.
“In a media environment defined by fragmentation, A+E Global Media's advantage is the strength and versatility of our brands, our strong partnerships and our vast library of owned assets,” Buccieri said. “As we continue extending our storytelling globally across all platforms with IP that travels to every screen and form-factor, we believe we are well suited for whatever opportunities may come next. I also want to express my deepest thanks to Hearst, The Walt Disney Company and to our board members — both recent and past — for their guidance and support over the years.”
A+E Global Media, launched as A&E (the Arts & Entertainment Network) in 1984, today reaches more than 414 million households across 200 territories in 40 languages, and its well-known brands include A&E, Lifetime, The HISTORY Channel, LMN, FYI and VICE TV.
Hearst’s minority stake in ESPN is unaffected by the deal.
It also owns 35 television stations; 30 daily and 50 weekly newspapers; digital services businesses; and more than 200 magazine editions around the world.
The deal reduces Disney's exposure to the declining cable network sector, which has been buffeted by cord cutting and will give Hearst greater control over A+E, which in recent years has been working to diversify its revenue streams.
