Disney is reportedly selling its half of A+E Global Media to Hearst Communications, the partner that owns the other half. Deadline reports the all-cash deal is believed to be worth north of $1 billion, is being finalized now, and is expected to be confirmed at Disney’s earnings call next week.
Neither company has announced anything yet. Word of the pending deal surfaced Thursday through analyst Rich Greenfield, and Disney, Hearst and A+E had not commented as of publication.
What Disney Would Be Giving Up
A+E Global Media, known as A+E Networks until a rebrand last year, is the parent of A&E, the History and Lifetime channel suites and FYI, along with production arms including A+E Studios. It has been a 50-50 venture between Disney and Hearst for most of the past four decades.
The sale process is not new. The two owners retained Wells Fargo roughly a year ago to explore options, with no guarantee at the time that the company would sell in whole or in part. What has changed is the buyer: rather than an outside bidder, Hearst appears to be simply absorbing the half it does not already own. Deadline reports that A+E president and chairman Paul Buccieri is expected to keep leading the company under Hearst chief executive Steven R. Schwartz.
A Reversal Worth Noting
If it closes, this would be Disney’s first significant move to shrink its traditional television footprint, and it lands against a company line that has pointed the other way. Chief financial officer Hugh Johnston used the May earnings call to reaffirm that Disney does not plan to spin off or sell linear networks.
There is a caveat that cuts the other way, though. A+E was always a jointly held venture rather than a wholly owned Disney network, which makes it the easiest piece to let go and does not automatically signal anything about FX, Freeform, National Geographic or ABC. What it will do is restart the questions about all of them.
The Hearst Relationship Continues
Selling A+E would not end the partnership between the two companies. Hearst holds 18 percent of ESPN against Disney’s 72 percent majority, an arrangement that continues regardless of what happens here.
The broader context is an industry shedding cable assets at speed, with Comcast spinning its networks into Versant and Warner Bros. Discovery separating its cable business from film and streaming. It also arrives during a period of visible cost discipline at Disney, which has continued cutting jobs across Pixar, National Geographic and ESPN. Expect firmer numbers at the earnings call.
For the latest news and updates make sure to follow us on social media! Facebook | Twitter | Threads | Instagram
