Disney Sells Cable Stake to Hearst for $1.2bn
Disney has sold its 50% stake in A+E Global Media to Hearst for $1.2bn, marking a shift towards streaming as the company's new leadership focuses on Disney+ growth. The deal hands Hearst full control of a portfolio reaching 414 million households across 200 territories and 40 languages.
Key points
- Disney has sold its 50% stake in A+E Global Media to Hearst for $1.2bn.
- The deal hands Hearst full control of a portfolio reaching 414 million households across 200 territories and 40 languages.
- Disney's new leadership is focusing on growing Disney+ as a super app to take on Netflix.
- Hearst, a privately held conglomerate, is happy to own steady, cash-generative media assets.
- The deal is a symbolic marker of the shift towards streaming in the industry, with Netflix now edging past the BBC as the first choice for UK viewers.
Disney's sale of its 50% stake in A+E Global Media to Hearst marks a significant shift in the company's strategy towards streaming. As Disney's new leadership focuses on growing Disney+ as a super app to take on Netflix, cable stakes that throw off cash but little growth no longer fit the company's story. Hearst, on the other hand, is happy to own steady, cash-generative media assets, and taking full control of A+E will allow it to run the business on its own terms.
The deal is a symbolic marker of the shift towards streaming in the industry. Netflix has grown so dominant that it now edges past the BBC as the first choice for UK viewers. This shift is not limited to the UK, as audiences worldwide are moving away from linear television and towards streaming services.
The leadership of A+E will remain unchanged, with Paul Bucci continuing to lead the company. The deal is expected to have little impact on the day-to-day operations of A+E, but it will give Hearst full control of the business and allow it to make decisions without needing to consider Disney's interests.
Sources
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