Walt Disney Co (NYSE:DIS, ETR:WDP) and Hearst are exploring the potential sale or merger of their joint venture A+E Global Media, sources with knowledge of the matter told various media outlets.
The two companies have reportedly hired Wells Fargo’s investment banking unit to evaluate strategic options for the business, which was recently rebranded from A+E Networks to A+E Global Media.
Among the possibilities being considered are a full sale or a merger with another media company, though sources cautioned that no final decision has been made and a transaction is not guaranteed if suitable terms cannot be reached.
A+E Global Media is jointly owned by Disney and Hearst on a 50-50 basis. The company’s portfolio spans several high-profile cable brands, including A&E, Lifetime, The History Channel, LMN, FYI, and Vice TV, as well as a global network of over 60 free ad-supported streaming TV (FAST) channels.
It also includes scripted and factual production units and holds stakes in content firms representing thousands of creators worldwide. The business reaches more than 414 million households globally and controls a substantial content library.
The potential sale comes as traditional media companies face growing pressure from cord-cutting and a shift toward digital streaming platforms. Disney, for example, has concentrated on bolstering its streaming services such as Disney+ and Hulu.
Disney shares traded 0.7% lower at about $122 late morning on Tuesday, but are up almost 10% in the year to date.