Disney is officially selling its 50% stake in A+E Global Media to Hearst in a $1.2 billion all-cash deal, the companies announced Tuesday. The transaction is expected to close in September, subject to customary closing conditions.
This marks the company’s first strategic sale under the leadership of new CEO Josh D’Amaro.
“We thank our Disney colleagues for decades of successful partnership,” Steven R. Swartz, president and CEO of Hearst, said in a statement. “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.”
“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,” said Paul Buccieri, president and chairman of A+E Global Media. “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.”
Buccieri will continue to lead the company following the transaction under Swartz, TheWrap has learned.
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The company is currently a 50-50 joint venture between Disney and Hearst and hired the investment banking arm of Wells Fargo to explore potential sale options last July. Rich Greenfield’s LightShed Partners initially reported news of the deal last week.
Disney’s potential sale of A+E Global Media to Hearst was first reported last summer. A+E Global Media owns cable channels including A&E, the History Channel and Lifetime.
The sale process started under the previous Disney regime of CEO Bob Iger but has been completed under D’Amaro.
This deal sees the company ditching a bulk of its linear assets; however, the company’s chief financial officer Hugh Johnston doubled down on the company’s position that it does not plan to spin off or sell linear TV networks on the most recent earnings call in May.
Disney still owns linear assets ABC, ESPN and cable networks such as National Geographic, FX and Freeform. Many of the series end up on their streaming platforms Hulu and Disney+. Disney and Hearst are also joint stakeholders of ESPN, with Disney as a majority owner at 72% and Hearst at 18%.
A+E Global Media also includes A+E Studios, which produced Netflix’s “The Lincoln Lawyer” and “You,” A+E Factual Studios and A+E Digital Media, which includes YouTube channels and SVOD platforms including A&E Crime Central, HISTORY Vault and Lifetime Movie Club, among others.
The media company is still profitable and has no debt under Buccieri’s leadership.
A+E Global has over 70,000 distinct content assets, ranging from short-form to long-form, which reach more than 414 million households in 200 territories and 40 languages.
Editor’s note: This story originally posted July 30 and was updated with details from the deal and its expected closing.
