Disney, NBC, and Hearst Merge Lifetime and A&E
It’s a little confusing, but what it sounds like is they’re trying to streamline the chain of command. I believe Disney and Hearst previously directly owned half of Lifetime, and now A&E (Which was owned by disney & NBC) owns Lifetime and is itself owned by Disney, NBC, and Hearst. With a possible requirement that NBC leaves the arrangement in 15 years.
DOW JONES NEWSWIRES
A&E Television Networks will acquire Lifetime Entertainment Services in a deal that will consolidate three of the U.S.’s major cable networks.
The deal comes as cable television has been one of the few media outlets to not be walloped by slumping advertising, as the bulk of their revenue companies comes from subscriber fees.
Included in the merger are 10 brands and more than 20 Web sites, with the combined networks expected to reach more than 250 million homes worldwide in more than 40 countries.
A&E is part owned by Walt Disney Co. (DIS) and NBC Universal, a unit of General Electric Co. (GE), while Lifetime is owned by Disney and Hearst Corp.
Abbe Raven, president and chief executive of AETN, will head up the combined company. Andrea Wong, president and CEO of Lifetime, will continue to run the Lifetime networks and report to Raven. The current leaders of the A&E Network and Biography Channel, as well as History and History International, will continue to run those operations.
Terms weren’t disclosed for the deal, but NBC Universal may opt or be required to exit the venture during the next 15 years. If that happens, Disney and Hearst would be 50-50 co-owners.
Disney and Hearst have been longtime partners, with them owning 80% and 20%, respectively, of cash cow ESPN.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; tess.stynes@dowjones.com
NEW YORK & BURBANK, Calif., Aug 27, 2009 (BUSINESS WIRE) — The Disney-ABC Television Group, Hearst Corporation and NBC Universal today announced an agreement for A&E Television Networks to acquire Lifetime Entertainment Services. The parent company will retain the name A&E Television Networks, LLC (AETN), and its subsidiary will retain the name Lifetime Entertainment Services, LLC. The closing of the transaction is subject to customary closing conditions and is expected to occur in 2009. Financial terms were not disclosed.
Abbe Raven, president and chief executive officer of AETN, will serve as head of the combined company following the closing. Raven has been recognized with numerous industry awards for building some of the most prominent brands in media including A&E Network, History and The Biography Channel, and for spinning them off into successful global franchises. Andrea Wong, president and CEO of Lifetime Entertainment Services, will continue to head the Lifetime Networks and will report to Raven following the closing. Robert DeBitetto, president and general manager, A&E Network and The Biography Channel, and Nancy Dubuc, president and general manager, History and History International, will both continue to report to Raven and run their respective networks.
The new agreement will, upon closing, consolidate three of the nation’s top cable networks under single management while preserving the distinct brand identities of each network. In addition, the combined company will be a global media content company reaching over 250 million homes worldwide in more than 140 countries around the globe. AETN will now include: A&E Network, History, Lifetime Television, Lifetime Movie Network, Bio, History International, Lifetime Real Women, History en Espanol, Military History and Crime & Investigation Network. Combining the resources, libraries and multiple platforms of 10 brands, including more than 20 Web sites, the new company will be well positioned to create new opportunities for expansion and cross-promotion, as well as build upon the record of success and strengths across a broad variety of audiences, platforms and programming. The combination of these businesses is also expected to yield substantial cost efficiencies.
“We are very proud of the success of these important cable brands and the content created with our partners, Disney/ABC and NBCU,” said Scott Sassa, president, Hearst Entertainment & Syndication. “The new A&E Television Networks better positions each brand to continue to focus on the world-class storytelling and quality original programs they are known for.”
“Consolidating these networks puts a powerful portfolio of distinct brands under the strategic vision of one of the industry’s most innovative and effective leaders,” said Anne Sweeney, co-chairman of Disney Media Networks, and president of the Disney/ABC Television Group. “The new company will be much greater than the sum of its parts, positioning these brands for a new level of success and performance.”
“AETN’s success is the result of a long and very successful partnership involving NBCU, Disney/ABC and Hearst,” said Jeff Gaspin, Chairman, NBC Universal Television Entertainment. “This transaction represents the next stage of this partnership and the evolution of some terrific media brands.”
Under the agreement, there are mechanisms by which NBCU may elect or be required to exit AETN over a period of up to 15 years, in which event Disney and Hearst could become 50-50 owners of AETN.
AETN is currently celebrating its 25th anniversary as an international media content company, operating in more than 140 countries around the globe with leading media brands including: A&E Network, History, History International, Bio, Crime & Investigation Network History en Espanol, Military History and a robust consumer products business. AETN is home to many award-winning drama and documentary series and specials including: A&E’s Intervention, The Cleaner, Gene Simmons Family Jewels; and History’s The Link, Battle 360 and Ice Road Truckers. In their target demographic of adults 25-54, both A&E and History are top 10 networks.
Lifetime Entertainment Services (Lifetime Networks) celebrates, entertains and supports women through Lifetime Television and Lifetime Movie Network – the top two women’s networks – Lifetime Real Women and Lifetime Digital, the ultimate digital source for women. Lifetime Television’s series include Project Runway, cable’s leading competition show; Models of the Runway; Army Wives, one of the top-rated original cable dramas among Women 18-49; the critically acclaimed comedic drama Drop Dead Diva; Rita Rocks, and the soon to premiere sitcom Sherri. With such films as the Emmy(R)-nominated Prayers for Bobby and Coco Chanel, Lifetime Television is the number one basic cable network for movie debuts in Women 18+. Lifetime Movie Network is currently one of the industry’s fastest-growing channels. The Company also advocates on a wide range of issues affecting women and their families.
