Episode 108: Disney Sells A+E Stake to Hearst in $1B+ Deal

Disney is selling its 50% stake in A+E Global Media — parent of A&E, History, and Lifetime — to co-owner Hearst Communications for north of $1 billion in an all-cash deal expected to be confirmed at Disney's earnings call next week. The transaction is Disney's first concrete move to reduce its traditional TV footprint under new CEO Josh D'Amaro, and it reopens the broader question of what the company plans to do with ABC, ESPN, FX, and its remaining cable assets. Key Takeaways: Disney is selling its 50% stake in A+E Global Media to Hearst for more than $1 billion, all-cash — deal expected to be announced at Disney's earnings call next week. A+E Global Media carries no debt and remains profitable; Paul Buccieri stays on as President & Chairman under Hearst CEO Steven Schwartz. Disney and Hearst retained Wells Fargo roughly one year ago to explore a sale; Hearst emerged as the clear buyer months ago given existing 50% co-ownership. A+E Global owns a significant portion of its own content library — a rarity in cable — including production behind Netflix's The Lincoln Lawyer, and holds minority stakes in Propagate, Range Media Partners, and Vice Media. Disney CFO Hugh Johnston as recently as May reaffirmed no plans to spin off or sell linear TV networks; this deal, structured as a JV exit, technically holds to that position while still reducing Disney's linear exposure. Disney holds 72% of ESPN; Hearst holds 18% — a separate co-ownership relationship that will likely come up in renewed discussions about Disney's linear strategy. The deal was initiated under Bob Iger and closed under Josh D'Amaro — his first major strategic divestiture, and a signal worth watching for pattern vs. one-off behavior. The A+E sale is clean precisely because it was a private 50/50 JV — easier to transact than majority-owned, publicly visible assets like ABC or FX. But it sets a precedent and will pressure D'Amaro to define Disney's linear posture explicitly on the earnings call. Agents, showrunners, and executives with deals touching Disney's cable and broadcast properties should watch next week's call closely — the framing D'Amaro uses will signal whether this is a one-time exit or the opening move in a broader portfolio rationalization. Subscribe to The Option for daily updates on the business behind the business.