Hearst confirms $1.2bn deal to acquire remaining 50% in A+E from Disney

A+E chairman and president Paul Buccieri

Justin Stevens/A+E Global Media

US media company Hearst has confirmed it will acquire the remaining 50% stake in A+E Global Media that it doesn’t already own from Disney for around US$1.2bn.

Under the terms of the agreement, which first emerged at the end of July and has now been confirmed officially, Hearst will pay approximately US$1.2bn in cash to subsidiaries of The Walt Disney Company for its half of A+E Global Media. The deal is expected to be completed next month, subject to customary closing conditions.

Once the transaction is complete, A+E Global Media, which comprises cablenets and brands such as A&E, History, Lifetime, LMN, FYI and Vice TV, will operate as a wholly owned business within Hearst’s entertainment division.

According to the companies, A+E Global Media already reaches more than 414 million households across 200 territories and distributes programming in 40 languages.

The deal marks the end of a decades-long partnership between Hearst and Disney, which have jointly controlled the business since its origins as A&E, the Arts & Entertainment Network, in 1984.

“We thank our Disney colleagues for decades of successful partnership,” said Hearst president and CEO Steven Swartz, adding that Hearst plans to continue backing the leadership team led by chairman and president Paul Buccieri.

Buccieri said the company’s strategy remains focused on leveraging its library and brands across an increasingly fragmented media landscape.

“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,” he said.