Hearst will gain full ownership of A+E's global television and content business as Disney sharpens its focus on streaming and ESPN amid pressure on traditional cable networks.
Hearst has agreed to buy Walt Disney Co.'s 50% stake in A+E Global Media for about $1.2 billion in cash, taking full ownership of the television and content company behind A&E, Lifetime, The History Channel, LMN, FYI and Vice TV. The transaction is expected to close in September, after which A+E will become a wholly owned Hearst business within its entertainment group. Disney's exit from the joint venture comes as the company prioritizes streaming and ESPN while assessing the role of some traditional linear TV assets amid declining cable subscriptions. A+E says it reaches more than 414 million households across 200 territories in 40 languages, and president and chairman Paul Buccieri said the company would continue expanding its content business across platforms and international markets following the deal.