Overview
- Hearst announced Tuesday that it will pay about $1.2 billion in cash for Disney’s 50% interest in A+E Global Media, with the transaction expected to close in September subject to customary conditions.
- Paul Buccieri will remain president and chairman of A+E after the closing and will lead the business as it becomes a wholly owned unit inside Hearst’s entertainment group.
- The assets covered by the deal include linear channels such as A&E, History, Lifetime, FYI and Vice TV plus A+E Studios, A+E Factual Studio, A&E IndieFilms and a range of FAST channels, AVOD and niche subscription streaming services.
- A+E Global Media is reported to be profitable and debt-free, helped by an early push into FAST channels and a large owned-content library that increases the value of the company’s channels and studios.
- The sale frees roughly $1.2 billion in cash for Disney to use for priorities such as share buybacks while giving Hearst full control of A+E’s global businesses and leaving Hearst’s separate roughly 18% stake in ESPN unchanged.