After the news had been revealed some days before by LightShed Partners, a firm specialized in financial research and market analysis, Hearst Communications issued a press release on August 4 to confirm that the company is to acquire from The Walt Disney Company its 50% interest in A+E Global Media (formerly A+E Networks). Once the transaction has been closed, Hearst will gain 100% ownership of A+E Global Media.

A+E is present in approximately 200 territories worldwide and its content is delivered in nearly 40 languages. In Latin America, it owns Pay TV channels A&E, Lifetime and History. Born in 1984, the company was initially owned by ABC (later acquired by Disney), NBC (later acquired by Comcast) and Hearst.

The amount of the deal will be USD l.2 billion and the transaction is expected to close in September.

“In a media environment defined by fragmentation, A+E Global Media’s advantage is the strength and versatility of our brands, our strong partnerships and our vast library of owned assets,” asserted A+E Global Media President Paul Buccieri. According to several financial analysts, although A+E has been affected in the last few years by the drop in the Pay TV audience, it is still profitable and free of debt.

Hearst is a diversified conglomerate of companies and it is Hearst Communications that manages the media business within the group. In addition to A+E, it is a shareholder with an 18% interest in Espn and operates television channels and newspapers throughout the United States. It also publishes magazines with editions in many countries.