Disney is finalizing a sale of its 50% stake in A+E Global Media to co-owner Hearst Communications, according to original reporting by Nellie Andreeva for Deadline.
The pending all-cash deal is believed to be worth more than $1 billion. Deadline reported that an announcement is expected during Disney's earnings call next week. Disney, Hearst and A+E had not announced the transaction as of 5:17 p.m. CDT Thursday.
If completed, the sale would place A&E, History, Lifetime, LMN, FYI and A+E Studios under one owner. Hearst already owns the other half of the company.
A+E's leadership is expected to stay
A+E Global Media President and Chairman Paul Buccieri is expected to remain in charge under Hearst CEO Steven R. Schwartz, according to Deadline.
The company's current portfolio spans cable networks, production studios, streaming channels and international distribution. A+E Studios produces Netflix's The Lincoln Lawyer, while the network group owns a large portion of its own programming library.
A partnership built over decades
Disney and Hearst have shared control of A+E for years. Their partnership expanded in 2009 when A&E Television Networks agreed to acquire Lifetime Entertainment Services.
Deadline reported that Disney and Hearst hired Wells Fargo last year to explore a sale. Hearst eventually emerged as the buyer for Disney's half, giving it a direct path to full ownership without bringing in a new partner.
The transaction would reduce Disney's exposure to traditional cable television while leaving its other network holdings untouched. The reported deal remains pending until the companies announce and complete it.
Sources: Nellie Andreeva's original report for Deadline, A+E Global Media's company overview and Disney's 2009 A&E and Lifetime transaction announcement.
Image: A+E Global Media.