After four decades as partners, Disney and Hearst are going their separate ways.
The Walt Disney Company has agreed to sell its 50% stake in A+E Global Media to Hearst for $1.2 billion in cash, bringing to an end a joint venture that has been a fixture of the American media landscape since 1984.
The transaction gives Hearst full ownership of A+E, the company behind cable brands such as A&E, History and Lifetime, as well as its production studios, streaming businesses and investments in companies including Vice, Propagate Content, Atlas Obscura and Philo TV.
The deal, expected to close later this year, marks Disney’s latest step away from traditional television assets as legacy media companies reshape their portfolios in response to changing consumer habits and the shift toward streaming.
The end of a four-decade partnership
A+E traces its origins to the launch of the Arts & Entertainment Network in 1984, when Hearst and ABC, then owned by Capital Cities, joined hands with other investors to create the cable network.
Over the years, the company expanded through acquisitions and consolidation. NBC acquired a minority stake in 1993, while the acquisition of Lifetime Networks in 2009 significantly broadened the company’s footprint in entertainment programming.
Disney and Hearst became equal partners in 2012 after buying out NBCUniversal’s stake, cementing a partnership that lasted more than a decade.
Now, Hearst is taking full control.
“We thank our Disney colleagues for decades of successful partnership,” said Steven Swartz, president and chief executive 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.”
Betting on brands in a fragmented media landscape
For Paul Buccieri, who has led A+E Global Media since 2018, the company’s future lies in leveraging its intellectual property across platforms at a time when audiences are increasingly fragmented.
“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.”
A+E will become part of Hearst’s entertainment division following the completion of the deal.
The transaction comes amid a sweeping restructuring across the global media industry, as traditional television companies rethink their business models in the streaming era.
Over the past year, A+E had explored strategic options and hired Wells Fargo to evaluate potential buyers. The deal also follows a string of industry shake-ups, including Comcast’s decision to spin off several cable assets into Versant and the ongoing consolidation moves involving major Hollywood studios.
For Disney, the exit highlights chief executive Bob Iger’s efforts to sharpen the company’s focus on streaming, sports and its core entertainment franchises, while gradually reducing exposure to legacy cable businesses.
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