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.

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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.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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