The Walt Disney Co. (NYSE:DIS) is cashing out of A+E Global Media, agreeing to sell its 50% stake to media conglomerate Hearst for approximately $1.2 billion in cash as investors continue to debate Disney’s long-term media strategy
Hearst Takes Full Control Of A+E
Hearst said Tuesday that, upon the deal closing in September, A+E Global Media will become a wholly owned business within its entertainment group.
“We look forward to supporting Paul Buccieri and A+E Global Media’s leadership team as they continue to make must-see programs and innovate around the great HISTORY, Lifetime and A&E brands,” Hearst President and CEO Steven Swartz said.
Disney’s exit from A+E comes as the company continues prioritizing its streaming and ESPN businesses while reassessing the role of traditional linear television assets.
Disney Strategy Faces Fresh Scrutiny
The transaction comes as investors and analysts continue debating Disney’s long-term media strategy and whether the company should further streamline its portfolio.
Last month, Wells Fargo analyst Steven Cahall argued Disney could unlock roughly 40% upside by exiting the streaming business and returning to its historical model of producing and licensing content rather than distributing it directly through Disney+.
He estimated Disney’s intellectual property and licensing business could generate a more predictable cash engine while allowing management to focus on its highest-return assets.
Investor Ross Gerber had also called for a broader breakup of Disney, arguing the company’s individual businesses are worth more separately than together, while separately urging Apple Inc. (NASDAQ:AAPL) to acquire the entertainment giant.
Disney Earnings In Focus
The announcement comes ahead of Disney’s third-quarter earnings report on Wednesday, where analysts expect revenue of $25.40 billion and earnings per share of $1.86, according to Benzinga Pro.
The company has beaten revenue estimates in six of the past 10 quarters and exceeded earnings expectations for 12 consecutive quarters.
Price Action: DIS closed 0.04% higher on Tuesday at $98.18 and gained 1.04% in the early hours of pre-market trading on Wednesday.
Benzinga edge rankings indicate DIS has a Momentum score in the 15th percentile and a Growth score in the 79th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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