Comcast sells minority stake in A&E; Television Networks
Comcast Corp. has struck a deal to sell its minority stake in A&E; Television Networks — whose holdings include cable channels A&E;, History and Lifetime — for $3 billion.
Although the sale was expected, the price tag was higher than Comcast originally thought its holdings were worth. Two months ago, when Comcast first disclosed that it had exercised an option to unload its 15.8% piece of A&E; Television Networks to majority owners Walt Disney Co. and Hearst Corp., it said its stake was worth $2 billion.
For Hearst and Disney, now 50-50 partners, the property and the prospect of getting 100% of it made it more valuable. The channels — particularly History, which last month struck ratings gold with its “Hatfields & McCoys” miniseries — are strong properties and cash cows.
Although Comcast could have kept an ownership position in A&E; Television Networks until 2024, the partnership gave it the option to reduce its stake or sell it entirely.
