Disney Ditches Half-Ownership of A+E Media for Over $1 Billion
Disney is expected to sell its 50% stake in A+E Global Media to Hearst for over $1 billion. The deal will give Hearst full ownership of the cable TV network group, which includes channels such as A&E Network, History Channel, and Lifetime. This move has sparked speculation that Disney may be distancing itself from its linear TV operations, a trend seen with other legacy media companies like Comcast Corp.
Media analyst Richard Greenfield agrees with Disney's decision to reduce its linear TV exposure by exiting the A+E stake. He believes there could be more to come, suggesting that Disney might completely exit the linear TV market.
Disney's new CEO Josh D'Amaro has said in previous quarters that the company has no interest in separating ESPN and ABC from Disney. However, Greenfield notes that Comcast Corp. was equally clear about its intentions with NBCUniversal until it spun off under a new publicly traded company earlier this year.