Disney Selling A+E Global Media Stake To Hearst For Over $1 Billion

Key Points:

• Disney is selling its 50% stake in A+E Global Media to co-owner Hearst Communications in a deal valued at over $1 billion, expected to be announced during Disney’s upcoming earnings call.
• A+E Global Media, which owns cable networks like A&E, History, Lifetime, and FYI, has been a 50-50 joint venture between Disney and Hearst, with Hearst emerging as the likely buyer after exploring a sale for over a year.
• The sale marks Disney’s first major move to reduce its traditional linear TV assets, amid ongoing uncertainty about the future of its other linear networks such as ABC, ESPN, National Geographic, FX, and Freeform.
• Despite declining linear viewership, A+E Global remains profitable and debt-free, partly due to strategic initiatives like early adoption of FAST channels and owning much of its content library, including production through A+E Studios.
• The transaction is expected to keep A+E Global’s current leadership intact under Hearst’s CEO Steven R. Schwartz, with Paul Buccieri continuing as President & Chairman.