It’s official — Hearst has announced an agreement 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, subject to customary closing conditions.
Upon closing A+E Global Media will become a wholly owned Hearst business within its Entertainment group.
A+E Global Media, parent of established cable networks A&E, the History and Lifetime suite of channels and FYI, was a 50-50 venture between Disney and Hearst. The deal caps a year-long process after the two companies last July retained Wells Fargo to explore a potential sale.
“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.”
As Deadline reported last week, A+E Global Media’s President & Chairman Paul Buccieri will continue to lead the company following the transaction under Hearst CEO Steven R. Schwartz.
“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, reaches more than 414 million households across 200 territories in 40 languages.
Impacted by the same linear viewership declines as the rest of of the cable ecosystem, A+E Global is not the cash cow it once was in terms of its revenue contribution to Disney’s bottom line — as revealed in Disney’s annual reports — which is likely why the company is offloading it.
Still, A+E Global is profitable and has no debt. The company’s financial health is attributed in large part to moves by Buccieri, including an early adoption of the FAST channel model.
Additionally, the A&E Networks own a large portion of their content, a rarity in cable. That makes for a valuable library that goes with the channels. The company’s A+E Studios is behind such series as Netflix’s The Lincoln Lawyer.
A+E Global also has stakes in numerous ventures, including Propagate, Range Media Partners and Vice Media.
