Disney Selling Its 50% Stake in A+E Global Media to Hearst Communications

New reports indicate that Disney is selling off its 50% stake in A+E Global Media to Hearst Communications.

What's Happening:

• In a deal reported to be worth over $1 billion in all-cash, Disney is offloading their 50% stake in A+E Global Media, with Hearst Communications set as the buyer, according to Deadline.
• A+E Global Media is the parent company of long-established cable networks A&E, the History Channel and Lifetime, as well as A+E Studios.
• Previously, the company was a 50/50 venture between Disney and Hearst, but now, Hearst will take full ownership.
• Leadership changes are not expected at this time, with A+E Global Media’s President & Chairman Paul Buccieri to continue to lead the company following the transaction.
• Other companies reportedly in the running to purchase the company included Starz, Roku and private equity firms.
• Hearst ultimately emerged as the most likely buyer months ago, as the media company already owns half and is believed to have "a significant war chest" to acquire the rest.
• The potential sale of A+E Global Media began during former Disney CEO Bob Iger’s leadership and was finalized under current CEO Josh D’Amaro, marking Disney’s first major move toward reducing its traditional television footprint.
• Disney CFO Hugh Johnston previously reiterated during the company’s May earnings call that Disney does not currently plan to spin off or sell its linear television networks.
• In 2023, Iger sparked speculation about Disney’s traditional TV assets when he said linear networks “may not be core” to the company’s future, though he later described the comments as a public “test” of strategic ideas.
• Disney and Hearst remain partners in ESPN, with Disney holding a majority stake and Hearst maintaining a minority ownership position.
• A+E Global Media has faced the same challenges as much of the cable industry, with its revenue contribution to Disney declining compared to previous years.
• Despite industry headwinds, A+E Global Media remains profitable and operates without debt, with much of its financial stability credited to leadership decisions, including an early investment in the FAST channel model.
• A+E Networks also owns a significant portion of its programming library, providing additional value beyond its channels through a large catalog of content.
• The company’s owned content library includes projects from A+E Studios, which has produced series such as Netflix’s The Lincoln Lawyer.