Good news for Disney fans in China.

BURBANK, Calif., Nov 03, 2009 (BUSINESS WIRE) — The Walt Disney Company today announced that the Project Application Report (PAR) for a Disney theme park in the Pudong district of Shanghai has received approval from the relevant authorities of the central government of China.

“China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for The Walt Disney Company in mainland China,” said Robert A. Iger, president and CEO of The Walt Disney Company.

The PAR approval will enable Disney and its Shanghai partners to move forward toward a final agreement to build and operate the park and begin preliminary development work. Upon completion of the final agreement, the project’s initial phase would include a Magic Kingdom-style theme park with characteristics tailored to the Shanghai region and other amenities consistent with Disney’s destination resorts worldwide.

SHANGHAI (Dow Jones)–The Shanghai Municipal Government will own 57% of the Disney theme park to be built in Shanghai, the People’s Daily reported Thursday, citing unnamed sources.

Walt Disney Co. (DIS) will own the remaining 43% stake, it said.

The report said the park will cost an estimated CNY24 billion and won’t open until 2014 at the earliest.

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It looks like Disney is serious about shaking up it’s film division (You’ll remember Dick Cook got the boot last month) and now they’re getting serious about change at Miramax.

The article below is from Variety.com

Miramax continues to downsize, losing Daniel Battsek as the president of Disney’s specialty film label.

Battsek will step down in January. No replacement has yet been named.

The move came as a surprise to staffers at the company on Friday, and most first found out in an email sent out by the exec who attributed his departure to the “change in direction” at Miramax.

That recently involved slashing the number of films the company releases to three a year, from the six to eight it previously had on its release sked, and folding much of its operations — marketing, distribution, operations and administrative support functions — into the Mouse House’s larger film group.

The resulting layoffs of its 80 employees included production chief Keri Putnam, who headed up Miramax’s L.A. office.

Disney started downscaling the division less than a month ago, (Daily Variety, Oct. 2), only three days before Rich Ross was officially named chairman of Walt Disney Studios.

While Battsek and the rest of Miramax’s creative, development, production and business and legal affairs teams were to remain in New York, the company and its 20 remaining staffers will now relocate entirely to Los Angeles. Battsek will assist in the transition.

“With the change in direction at Miramax, we have reached a mutual agreement with Daniel Battsek that he will leave his post as president, effective January 2010,” Ross said in a statement early Friday afternoon. “During his 18 years of service, he has brought some very prestigious and award-winning films to the studio from ‘Calendar Girls’ to ‘The Queen’ to ‘No Country for Old Men.’ We wish Daniel the very best on his future endeavors.”

Disney is still trying to figure out the future of Miramax as the company puts a greater emphasis on tentpoles and family fare.

While studios have increasingly been downbeat on spciality lables, saying it’s become more difficult to recoup the costs of adult-targeted pics, Miramax’s survival so far, albeit in smaller form, was likely helped by the fact that the studio has a first-look pact with Scott Rudin, whose “No Country For Old Men” won the best picture Oscar in 2007 for Miramax (and partner Paramount Vantage) and received a number of noms for the shingle with “Doubt” as well.

This year, Miramax has suffered from a string of disappointing performers at the B.O., including “The Boys Are Back,” “Cheri” and “Extract.” “Boys” has earned just $728,000 domestically since its release Sept. 26. Its biggest earner to date is “Chicago,” which earned $307 million worldwide in 2002.

Miramax could continue to be a home for Rudin’s more high-profile dramas given that Disney will have to find a spot on its own slate for films from other producers like Jerry Bruckheimer, as well as pics from DreamWorks, for which it will turn to Touchstone.

Miramax will still unspool “Everybody’s Fine” in December, while the animated toon “Gnomeo and Juliet,” featuring songs by Elton John, is still in production.

Battsek was tapped to head Miramax in July 2005, following Disney’s split from Miramax co-founders Harvey and Bob Weinstein. Its library includes “Pulp Fiction” and “Shakespeare in Love.”

A well-respected exec, Battsek first began working with Disney on U.K. film distribution in 1991, and joined Buena Vista Intl. in 1992. He was exec veep and managing director of distribution and production for BVI U.K. prior to his appointment at Miramax.

Before Disney, Battsek was managing director of Palace Pictures, overseeing marketing, acquisitions and distribution for the U.K. and Ireland.

Disney has begun production on a new animated series that revolves around the lives of fish that attend school in the middle of a large pet store fish tank.

The idea, of course, is to explore the “traditional teen issues” in a way that hasn’t been done before.

Wait, isn’t there a popular animated show about sea creatures on Nickelodeon? Sponge something? Oh wait, those are ocean dwellers, never mind.

I’ll certainly give it a fair shake when it premieres in 2010. Chelsea Staub is excited to be voicing “an overly dramatic goldfish!” and that’s more than enough to make me interested.

What follows is the official Disney press release:

Production has begun on “Fish Hooks” (working title), an animated comedy series centered around three aquatic friends in a fish tank, produced using an innovative mixture of 2-D digital animation and photo collage by Disney Television Animation for Disney Channels Worldwide. “Fish Hooks” is scheduled to premiere Fall 2010. The announcement was made today by Gary Marsh, President, Entertainment, Disney Channels Worldwide.

“The ‘Fish Hooks’ team has created one of the most original, inventive animated series on television – bringing an ingenious twist to the classic archetypes of high school life (where else but in the world of a high school fish tank would you find characters named Piranica, Clamantha or Jocktopus?),” said Marsh.

The 21-episode series follows Milo, Oscar and Bea, three friends and neighbors who attend Freshwater High, a school submerged in a giant fish tank in the center of a local pet store. Together they experience the typical challenges and triumphs of tween life, like friendship, dating and sports, along with more atypical teen issues like giant lobster attacks and school field trips to the hamster cages.

The series was created by children’s book illustrator Noah Z. Jones, developed for television by Alex Hirsch (“The Marvelous Misadventures of Flapjack”) and Bill Reiss (“Chowder”), executive-produced by Adam Burton (“The Grim Adventures of Billy & Mandy”) and co-executive produced by Noah Z. Jones. Carl Greenblatt (“Chowder”) and Bill Reiss will direct.

“Fish Hooks” features a talented voice cast including Kyle Massey (“Cory in the House”) as Milo, an adventurous party guy; Chelsea Staub (“JONAS”) as Bea, an overly dramatic goldfish; and Justin Roiland (“The Sarah Silverman Program”) as Oscar, Milo’s neurotic brother.

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For those of you wondering what Michael Eisner’s been up to since he was forced out of Disney, the following article is for you!

Vuguru LLC, an Internet-content production house launched two years ago by former Walt Disney Co. (DIS) Chief Executive Michael Eisner, has become a stand-alone company under an investment and distribution deal with Rogers Communications Inc. (RCI).

Eisner is chairman of Vuguru, which plans to increase its annual productions to 30 series a year. Its current shows include the Internet hit series “Prom Queen.” It was Vuguru’s first production, a scripted, serialized mystery about the final two months of the high school year leading up to prom night. The next installment of the franchise is forthcoming.

The agreement between Rogers and Eisner’s Tornante Co. LLC “ensures that Vuguru will remain at the forefront of the ever-evolving business of original new media content,” the companies said. Financial terms were not disclosed.

Rogers executive Claude Galipeau said the partnership will allow Vuguru to program series exclusively for Rogers’ customers and advertisers across Rogers’ range of channels, including broadband Web mobile and cable video-on-demand. Some 10 to 15 productions are scheduled for 2010, the companies said. Rogers and Vuguru have also reached a long-term distribution deal for the exclusive Canadian rights to future Vuguru projects.

When Vuguru was launched, Eisner said advertisers were skittish about marketing alongside user-generated content on places like YouTube, where the quality and appropriateness of videos is an unknown. At the time, Eisner said Vuguru’s goal was to be “the leader in producing high-quality, story-driven content for the Internet that up until now could only be found in movie theaters or on television.” Eisner said his aim was to “create compelling stories” to attract interest from consumers and marketing dollars from advertisers.

Eisner founded Tornante – which means “hairpin turn” in Italian – after he left Disney in 2005.

-By Mike Barris, Dow Jones Newswires; 212-416-2330; mike.barris@dowjones.com

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Breaking News! Our very own Rich Ross has been selected as the new chairman of the Walt Disney Studios.

Ross was the president of the Disney Channel, and has been our #1 recomended target for letters and emails ever since the founding of SDS. But now that Ross is moving on to the film division, we need to change our strategies.

We’ll be watching as Disney reshuffles it’s personel, and we’ll keep you apprised on whom you need to write to.

Disney press follows:

Rich Ross, President of Disney Channels Worldwide, has been named Chairman of The Walt Disney Studios, it was announced today by Disney President and CEO Robert A. Iger.

Ross will oversee worldwide production, distribution and marketing for the company’s range of live-action and feature animated film labels, including Walt Disney, Touchstone, Miramax and Disney/Pixar. In his new role, which he assumes immediately, he will also head Disney’s theatrical and music groups.

In his thirteen years at Disney, Ross has consistently created hit original programming, effectively expanded a worldwide creative and distribution organization, skillfully built the Disney brand with global franchises that work across borders and technology platforms and put in place a strong management team.

“Rich has an outstanding record of creating high-quality family entertainment that delights audiences around the world,” said Iger. “With his success in building the Disney brand across many of our businesses, his astute marketing sensibility, his proven ability in working effectively with talent and his skill at navigating complex global markets, I’m confident he’s the perfect leader for our studio group.”

“I am very excited to play a key role in continuing the storytelling legacy of The Walt Disney Studios. There has never been a better time to entertain our global audiences with high-quality and compelling content and introduce new characters that will become family favorites. I look forward to working with Bob, the team at the studios and all of our Disney family towards that goal,” said Ross.

Under Ross’s leadership, the performance of Disney Channels Worldwide has been consistently strong in both creative and competitive terms, in the U.S. and globally. The group now includes a total of 94 channels and channel feeds available in 163 countries in 32 languages and features such brands as the flagship Disney Channel, the boy-focused Disney XD and Playhouse Disney for younger kids.

Ross has also overseen the growth of Radio Disney and of the group’s multiplatform offerings, which includes subscription video-on-demand and content-rich broadband websites DisneyXD.com and DisneyChannel.com, the number one kid’s entertainment website among Kids 6-14.

In the U.S., Disney Channel has been the #1 TV network among Kids 6-11 and Tweens 9-14 for the last seven and nine years respectively, buoyed by such breakout series as Lizzie McGuire, That’s So Raven, The Suite Life of Zack and Cody, Hannah Montana, Wizards of Waverly Place and Sonny With A Chance. Stars of Disney Channel programs, including Raven-Symone, Selena Gomez, Jonas Brothers, Demi Lovato and Miley Cyrus, have become household names.

Disney Channel’s record with original movies is equally impressive. With recent blockbusters like High School Musical 2, Wizards of Waverly Place The Movie and Camp Rock, Disney Channel can claim cable’s top two movies of all time and three of the top five.

Disney Channel programming has also helped build other Disney businesses, including the quadruple-Platinum-selling Hannah Montana soundtrack and the number one US album in 2006, High School Musical soundtrack. Books, stage shows, feature films, video games and merchandise featuring original Disney Channel characters have become a critical part of The Walt Disney Company’s success in recent years.

Ross joined Disney in 1996 as Disney Channel’s Senior Vice President, Programming and Production and was promoted to positions of increasing responsibility before being named Disney Channel president in April 2004. Prior to his tenure at Disney, he was a member of the executive team that launched FX Networks. Ross also held several senior positions at Nickelodeon from 1986 to 1993 where he oversaw talent booking, casting and program development and was involved in the launch of the channel’s first successful syndicated show and its first international network.

Ross is a member of the Board of Directors for Hollywood Radio Television Society and Cable in the Classroom — an organization that represents the cable telecommunication industry’s commitment to education. A native of New York and a 1983 graduate of the University of Pennsylvania with a Bachelor of Arts degree in International and English, Ross received his J.D. degree from New York’s Fordham University in 1986.

Mark my words, there’s more to this story than they’re saying. And honestly, I’m not sure what to make of this.

Walt Disney Co. studio chairman Dick Cook announced Friday he was resigning immediately, after nearly 40 years with the company.

Cook said he had been contemplating leaving the studio for some time and that “it’s the right time for me to move on to new adventures.”

It was not immediately known who would replace Cook as chief of the studio.

“I have loved every minute of my 38 years that I have worked at Disney,from the beginning as a ride operator on Disneyland’s steam train and monorail to my position as chairman of The Walt Disney Studios,” Cook said.

Cook began working at Disneyland as a ride operator in 1970 and moved up through the ranks to become chairman of Walt Disney Studios 32 years later.

Described by BusinessWeek in 2003 as “the nicest guy in Disney’s jungle,” Cook is known for his down-to-earth personality and good relations with Disney’s partners.

Cook’s studio has drawn criticism recently for the quality of its films. Movies like “Race to Witch Mountain,” “Bedtime Stories,” and “Confessions of a Shopaholic” were box office flops.

Cook said the studio’s slate of upcoming movies is the best in its history.

I do agree with Cook’s stance on the upcoming slate of live action films. His presentation last week was very well put together.

John Lasseter spoke in depth abut the upcoming slate of disney animated films on day four of the D23 Expo. This article does a good job of summarizing all of the announcements he made.

John Lasseter, chief creative officer, Walt Disney Animation and Pixar Animation Studios, made several announcements regarding upcoming animated motion pictures while presenting at the Odeon Leicester Square in London (9/10/09) and at the D23 Expo at the Anaheim Convention Center (9/13/09).

The news coming out of Lasseter’s presentations at both events include:

Timothy Dalton, Ned Beatty, Bonnie Hunt, Whoopi Goldberg, Jeff Garlin and John Morris joining the talented voice cast of Disney-Pixar’s Toy Story 3 along with Tom Hanks, Tim Allen, Joan Cusack, Don Rickles, Wallace Shawn, John Ratzenberger, Estelle Harris, Laurie Metcalf, R. Lee Ermey, Jodi Benson and Michael Keaton. Directed by Lee Unkrich and produced by Darla K. Anderson, this comedic and heartwarming adventure in Disney Digital 3D(TM), brings moviegoers back to the world of Woody, Buzz and our favorite gang of toy characters as Andy prepares to leave for college. “Toy Story 3″ opens in theaters June 18, 2010.

Walt Disney Pictures’ Rapunzel has found its lead voice in singer/actress Mandy Moore (“Saved,” “American Dreamz”) starring in the title role along with Zachary Levi (hit TV series “Chuck,” “Big Momma’s House 2″) as the dashing bandit. This action-packed, swashbuckling, animated musical comedy about the girl behind 70 feet of magical, golden hair who takes off on a hilarious, hair-raising escapade with the help of a dashing bandit directed by Byron Howard and Nathan Greno, produced by Roy Conli with music by Alan Menken. This Disney Digital 3D(TM) adventure opens in theaters Holiday2010.

Disney-Pixar’s Cars 2 combines thrills, intrigue and high octane comedy as Lightning McQueen and his trusty-but-rusty friend Mater race across five countries – England, France, Germany, Italy and Japan – where they face a host of new and worthy competitors. “Cars 2″ is being directed by the producer of the Oscar-winning animated feature “Ratatouille” Brad Lewis and produced by Denise Ream. This Disney Digital 3D(TM) race begins in theaters June 24, 2011.

The fifth film in Disney’s enormously popular fairy film franchise is Tinker Bell and the Race through the Seasons. Veteran Disney writer/producer/director Bobs Gannaway (“Stitch! The Movie,” “House of Mouse”) is set to direct. The second entry in the popular direct-to-DVD and Blu-ray series, “Tinker Bell and the Lost Treasure,” is due for release on October 27th, 2009. In this latest adventure, all the fairy talents compete in a challenging and traditional leap year race through the four seasons of Pixie Hollow. With Tinker Bell’s help, Clank and Bobble enter the race and all the hopes of the Tinkers rest on their shoulders. But the pressures of competition and Bobble’s desire to impress a beautiful lightning fairy threaten Clank and Bobble’s longtime friendship. In the end, will Bobble place winning a race above losing a best friend?

Winnie the Pooh marks the first time in more than 35 years that a feature film staring Disney’s beloved characters is being produced at Walt Disney Animation Studios. Under the supervision of John Lasseter and producer, Clark Spencer (“Lilo & Stitch,” “Bolt”) the movie is due out in theaters spring 2011. Steve Anderson (“Meet the Robinsons”) and Don Hall (head of story on “The Princess and The Frog”) will co-direct this heart-warming motion picture that reunites five stories from the original books by A.A Milne with Disney’s classic, hand-drawn art style. Tidbit: Burny Mattinson, who worked as an animator on the original “Winnie the Pooh and the Honey Tree” featurette in 1964, will serve as the lead story artist on the project.

“Unidentified Flying Mater,” the latest in a series of Disney-Pixar animated shorts called Cars Toons, is set to debut on Friday, November 20th on Disney Channel, Disney XD, and ABC Family. Directed by Academy Award(R)-winner John Lasseter with Rob Gibbs co-directing, the film stars Lightning McQueen’s loyal pal, Mater. Additional shorts – “Monster Truck Mater,” “Heavy Metal Mater,” and “Tokyo Mater” will debut in 2010.

I got to see “Unidentified Flying Mater” and “Heavy Metal Mater” at the Expo. UFM in particular is a great short.

ALL NEW DISNEY PIXAR “CARS TOONS” REV UP AND ROLL OUT
ON DISNEY CHANNEL, DISNEY XD AND ABC FAMILY
BEGINNING FRIDAY, NOVEMBER 20

– Award-winning Composers Mark Mothersbaugh (“Devo”)
and BT Score Four Episodes –

All-new episodes of Disney•Pixar’s “Cars Toons,” an animated short series directed by Academy Award©-winner John Lasseter with Rob Gibbs co-directing and starring Lightning McQueen’s rusty friend Mater, will debut beginning FRIDAY, NOVEMBER 20 on Disney Channel, Disney XD and ABC Family. They are titled “Unidentified Flying Mater,” “Monster Truck Mater,” “Heavy Metal Mater” and “Tokyo Mater.”

Mark Mothersbaugh (“Devo”) composed the music for three episodes and BT (“The Fast and the Furious”), a prominent composer of dance and electronic music, scored “Tokyo Mater.”

(Editors please note: photos are available on disneychannelmedianet.com; disneyxdmedianet.com and abcfamilymedianet.com)

The four new stories follow the popular shorts that began debuting in October 2008 and which have reached 22.9 million Kids 2-11, or 56% of all kids in that age group in the U.S., and 67.5 million total unique viewers.

“Cars Toons” are directed by John Lasseter, (“Cars,” “Toy Story 2,” “A Bug’s Life” and “Toy Story”) and co-directed by Rob Gibbs (“Cars,” “Finding Nemo,” “Monsters, Inc” and “Toy Story 2″). Kori Rae (“The Incredibles” and “Monsters Inc.”) is the producer. Victor Navone (“Cars,” “The Incredibles,” “Finding Nemo” and “Monsters, Inc.”) co-directed the episode “Tokyo Mater.”

In “Unidentified Flying Mater,” premiering Friday, November 20 on Disney Channel, Mater meets a cute little bucktoothed UFO named Mator, takes him out for a night of fun and they quickly become best friends. But when Mator is captured by the military, Mater and Lightning McQueen come to the rescue.

Subsequent episodes to premiere in 2010 are:

“Monster Truck Mater”
Mater is a professional wrestler who works his way up the ranks from amateur to World Champion Monster Truck Wrestler, wrestling all kinds of characters along the way. When faced with his biggest opponent yet, Mater tags in his “tag team partner,” Frightening McMean.

“Heavy Metal Mater”
Mater is a rock star in a heavy metal band. He starts out in a garage band and rises to the top with his hit song, “Dad Gum.” Lightning McQueen joins him on stage in the middle of a huge concert and they rock into history.

“Tokyo Mater”
A routine towing assignment lands Mater in Tokyo, where he is challenged to a drift-style race against a nefarious gang leader and his posse of ninjas. With the help of his friend, “Dragon” Lightning McQueen, and some special modifications, Mater attempts to drift to victory and become “Tow-ke-O Mater, King of all Drifters.”

About “CARS”
Directed by Academy Award©-winner John Lasseter, “Cars” was the 2007 Golden Globe winner for Best Animated Feature Film and an Academy Award nominee for Best Animated Feature Film and Best Music – Original Song. The film also won the 2007 Grammy Award and was the #1 animated film on DVD for 2006. Its soundtrack was the first Pixar soundtrack to debut in the Billboard Top 10 and to certify gold.

Disney•Pixar’s “Cars 2,” directed by Brad Lewis, producer of the Oscar®-winning film “Ratatouille,” will hit the track on June 24, 2011 and will be presented in Disney Digital 3D™ in select theaters. In this thrilling new high-octane installment of the “Cars” saga, all the world’s a racetrack as superstar Lightning McQueen zooms back into action, with his best friend Mater in tow, to take on the globe’s fastest and finest. Mater and McQueen will need their passports as they find themselves in a world of intrigue, thrills and fast-paced comedic escapades. While racing through England, France, Germany, Italy and Japan, they face a host of new and worthy competitors.

Disney•Pixar’s “Cars” is among the fastest growing franchises for Disney Consumer Products, has a presence at Disneyland Resort where a new Cars Land, a 12-acre world of Radiator Springs with three new attractions, will debut at Disney’s California Adventure in 2012.

This year, Disney Online launched the World of Cars Online (www.WorldOfCars.com), a virtual world that allows fans to immerse themselves in Radiator Springs and beyond, to interact with other players and to create an online community alongside their favorite characters including Lightning, Mater and Doc.

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I’m not convinced that Marvel’s worth $4 Billion, but it’s certainly a good addition to the company.

I can already see Spider Mickey Merchandise. LOL

Walt Disney Co. (DIS) agreed to acquire Marvel Entertainment Inc. (MVL), the creator of Spider-Man and thousands of other characters, for about $4 billion.

The deal marks one of the largest acquisitions in Disney’s history and the first big media deal since companies began hoarding cash last fall during the global financial crisis.

It also fits with Disney’s stated strategy of driving revenue from popular content over time across multiple platforms, and it gives the company a boost with young male audiences, where Marvel’s characters like Iron Man, Spider-Man, X-Men, Captain America, Fantastic Four and Thor are particularly popular. Disney has shown more strength with females from its properties like Hannah Montana.

Under the agreement, Marvel shareholders will receive $30 a share in cash plus about 0.745 Disney share for each Marvel share. Based on Friday’s closing prices, the deal is valued at $50 per Marvel share, about a 29% premium.

The companies said the amount of cash and stock in the deal will be adjusted at closing so that the value of the Disney stock is at least 40% of the purchase price. Besides shareholder backing, the deal will require antitrust approval.

Miller Tabak analyst David Joyce noted that Disney is paying a steep valuation for Marvel but he views the deal as a “good long-term strategic move” for the company. “This is another sign that confidence is returning to the marketplace,” said Joyce.

Disney shares were down 1.7% at $26.38 in recent trading, while Marvel shares jumped 26% to $48.79.

Marvel has long-term production and distribution deals in place with Disney competitors, including Sony Corp.’s (SNE) Sony Entertainment, News Corp.’s (NWS, NWSA) 20th Century Fox Films and Viacom Inc.’s (VIA) Paramount Pictures, which complicate the company’s strategic position.

(News Corp. is the parent of Dow Jones & Co., publisher of this news service.)

In many cases, it will take years before Disney can garner anything more than licensing fees from some key Marvel characters, but Disney Chief Financial Officer Tom Staggs said those revenue are attractive and the company will have the option to produce and distribute Marvel’s content on its own when those deals expire.

“Marvel is worth more inside Disney than outside Disney,” said Staggs.

Marvel Chief Executive Ike Perlmutter called Disney “the perfect home for Marvel’s fantastic library of characters given its proven ability to expand content creation and licensing businesses.”

The comic book maker has been boosting cultural awareness of its characters by continuing to branch out into animated television series and live-action films. However, the company in the spring pushed back its film schedule through 2012 as it looked to build anticipation for its upcoming slate of films.

Marvel’s results have been boosted from its film-production business, and last year was the first year it which it began to produce its own films, taking in all the profits instead of just licensing fees.

In March, it formed an international advisory board made up of business leaders from overseas markets as it looked to expand its global presence.

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.