Disney and Hearst Explore Sale of A+E Networks: What It Means for Cable Channels in 2023

A+E Global Media, known for channels like A&E Network, Lifetime, and History, is considering a sale. This move isn’t unique; many cable networks are facing similar fates. NBCUniversal plans to sell MSNBC, CNBC, and USA Network, while Warner Bros. Discovery is looking to divest popular channels like CNN and TBS.

A+E Global Media is co-owned by Disney and Hearst, each owning 50%. They’ve enlisted Wells Fargo for the potential sale. However, it’s unclear if they’ll sell everything or just parts of their business. With current market conditions, both companies are curious to see who might be interested in A+E’s lifestyle and unscripted content, which includes Lifetime Movie Network and Vice TV.

Interestingly, A+E Global Media is a rare privately held media company, choosing not to publicly disclose financial results.

This trend of cable networks selling off assets reflects a bigger issue: the decline of traditional TV due to cord-cutting. More viewers are turning to streaming services, forcing established networks to change their strategies. For instance, NBCUniversal is focusing on its streaming platform, Peacock, and Warner Bros. Discovery aims to streamline its operations to compete more effectively.

A+E’s widely recognized brands could be appealing to buyers. As networks shift, established channels like A&E and History have managed to maintain programming budgets while many others have slashed theirs. Lifetime, for instance, has ramped up original movies, while History has focused on high-quality documentaries.

Under the leadership of Paul Buccieri, A+E has capitalized on its extensive library by creating FAST channels and licensing opportunities globally. Buccieri has been instrumental since joining in 2015, successfully positioning the company amidst industry changes.

Historically, A&E Network and Lifetime launched in the early 1980s, a time when cable TV was just emerging. By the mid-90s, History joined the mix, expanding A+E’s influence in the media landscape. Their roots trace back to a joint ownership of ABC, NBC, and Hearst until Comcast’s acquisition of NBCUniversal forced a sell-off of A&E’s stake.

With so much change in the industry, observers are keenly watching what this potential sale could mean for the future of A+E Global Media and how it fits into the ever-evolving landscape of television.

For more information on the state of cable networks and their transitions to streaming, you can refer to this report from the NCTA.



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