Disney exits A+E as Hearst seals $1.2 billion deal

Privately held U.S. media conglomerate Hearst on Tuesday struck a deal to acquire Disney's DIS.N 50% stake in A+E Global Media for about $1.2 billion in cash, giving it full ownership of the television and content business.

Disney's exit from A+E follows the company's efforts to prioritize streaming and ESPN, even as it evaluates the role of some traditional linear TV assets amid declining cable subscriptions.

• The transaction is expected to close in September. A+E will then become a wholly owned Hearst business within the company's entertainment group, Hearst said in a statement.

• A+E, previously a 50-50 venture between Hearst and Disney, operates television brands including A&E, Lifetime, The History Channel, LMN, FYI and Vice TV. It reaches more than 414 million households across 200 territories in 40 languages.

• The company would continue expanding its content business across platforms and international markets following the deal, said Paul Buccieri, A+E's president and chairman.

• "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 CEO Steven Swartz said.

• Hearst, which also owns an 18% stake in ESPN, has interests spanning television, newspapers, magazines, financial services and healthcare information businesses.

-Reporting by Natalia Bueno Rebolledo and Mrinmay Dey in Mexico City; Editing by Shreya Biswas/Reuters