Disney is preparing to sell its 50% stake in A+E Global Media to longtime co-owner Hearst Communications in an all-cash deal valued at just over $1 billion, according to Deadline. The agreement is in the final stages of completion and is expected to be formally disclosed during the entertainment giant’s upcoming quarterly earnings presentation next week. The move marks a notable shift in Disney’s approach to its traditional television holdings and represents one of the first significant steps by the company to reduce its exposure to linear cable assets under current leadership.
A+E Global Media operates a portfolio of well-established cable networks that include A&E, the History Channel suite, Lifetime and its related channels, and FYI. The company has functioned for years as an equal joint venture between Disney and Hearst. Approximately one year earlier, the two partners retained Wells Fargo to evaluate strategic alternatives, including a potential full or partial sale of the business. Early interest reportedly came from various parties such as streaming and cable operators as well as private equity firms. Over time, however, Hearst emerged as the clearest and most logical acquirer given its existing half ownership and available capital resources.
Leadership continuity is expected following the transaction. Paul Buccieri, the current president and chairman of A+E Global Media, is positioned to remain at the helm of the company once it operates fully under Hearst. He will report into Hearst’s chief executive, Steven R. Schwartz. The continuity is viewed as important for maintaining operational stability during the ownership transition.
The sale process originally began during the tenure of former Disney chief executive Bob Iger and has reportedly been brought to completion under his successor, Josh D’Amaro. While Disney’s chief financial officer has previously reiterated that the company does not intend to spin off or divest its core linear television networks such as ABC, ESPN, National Geographic, FX or Freeform, the A+E transaction stands apart because the asset has always been structured as a separate private joint venture rather than a wholly owned division. Nevertheless, the divestiture is widely expected to revive broader industry discussion about the long-term strategic role of linear television within Disney’s portfolio.
Like much of the broader cable television sector, A+E Global Media has experienced pressure from declining linear viewership and the ongoing migration of audiences toward streaming platforms. Its contribution to Disney’s overall financial results has diminished compared with peak years, according to information reflected in past company filings. At the same time, the business remains profitable and carries no debt. Its relative financial resilience has been attributed in part to proactive strategic decisions, including an early and effective embrace of free ad-supported streaming television channels that have helped offset traditional cable declines.
Another significant strength lies in the ownership structure of its programming library. Unlike many cable operators that license large portions of their content, A+E Networks controls a substantial share of its own intellectual property. This owned library represents a durable asset that travels with the networks in any ownership change. The company’s production arm, A+E Studios, has also generated high-profile scripted series for major streaming platforms, further enhancing the value of its content assets. Beyond its core channels, A+E Global Media holds interests in several other media and production ventures, adding additional layers of diversification.
The transaction also carries implications for the longstanding commercial relationship between Disney and Hearst. The two companies already share ownership in ESPN, where Disney holds a substantial majority stake and Hearst maintains a minority position. The A+E sale therefore simplifies one joint-venture relationship while leaving the ESPN partnership intact for the time being.
Hearst, for its part, gains full control of a still-profitable cable group with a recognized brand portfolio, valuable owned content, and established distribution relationships. Full ownership may allow the company greater strategic latitude in programming decisions, digital expansion, and potential future partnerships or investments.
The expected announcement next week will provide further financial details and any accompanying commentary from Disney leadership regarding the strategic rationale. Until then, the pending transaction stands as a concrete indicator that even large media conglomerates are actively pruning non-core or jointly held linear assets in response to structural changes across the television landscape. The outcome will be closely watched for signals about how other major media companies may approach their own remaining cable holdings in the years ahead.
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