According to Deadline, Disney will part ways with one of its linear holdings, selling its 50 percent stake in A+E Global to partner Hearst Media. Totaling more than $1 billion, the purchase is expected to be a cash deal and will be officially announced at next quarter’s earnings call. Analyst Rich Green was first to break the news via X on Thursday.
Leadership at A+E Global is set to stay intact, with current president and chairman Paul Buccieri expected to continue his role. He will remain under Hearst CEO Steven R. Schwartz. Currently, Disney, Hearst and A+E have yet to comment.
The company began to entertain the idea of a possible sale after retaining Wells Fargo for investment banking purposes. A+E operates the History Channel and Lifetime in addition to other channels. They initially explored external options such as Roku and Starz, but eventually Hearst became the primary option. The company is believed to have substantial assets to complete the purchase of the other half of the company.
The previous CEO of Disney, Bob Iger, started the process before passing the baton to current chief Josh D’Amaro. This current sale does not necessarily indicate a broader plan to sell or spin off linear assets.
Still, the future of Disney-owned cable assets remains unclear. ABC, ESPN, and other cable assets positioned within the company may change in the near future. Hearst is a smaller partner in ESPN, owning 18 percent. Iger had previously called linear assets “not core” in 2023 before partially retracting his statements. The sale may bring the conversation of Disney’s divestiture from linear assets back to the forefront.
A+E Global is a 50-50 split between the two companies. A+E Global is not as profitable as it once was but still pulls in a strong bottom line. Buccari has been largely credited with the company’s strong financial profile as he quickly adopted the FAST company model. A+E Global currently holds no debt and owns most of its intellectual property, an uncommon occurrence in Cable. A+E also maintains business ventures and partnerships, including Propagate, Range Media Partners, and Vice Media.