• by Wayne Friedman , August 27, 2009

Formalizing what has been known since June, Disney/ABC Television Group, Hearst Corporation and NBC Universal will simplify their interests in A&E Television Networks and Lifetime Entertainment Services for the near term.

The three acquiring companies engineered a deal for A&E to acquire Lifetime and put Abbe Raven, president and chief executive officer of AETN, in charge of the new combined division.

AETN will now include: A&E Network, History, Lifetime Television, Lifetime Movie Network, Bio, History International, Lifetime Real Women, History en Español, Military History and Crime & Investigation Network.

Much of the intricacy of the deal involves reconfiguring the existing network partnerships, which will eventually see NBC Universal, a minority partner in A&E Networks, ending this cable network relationship, sources said.

The resultant company will have Walt Disney and Hearst each with around 42.5% stakes, while NBC will own 15.0%, according to executives.

In a release, the companies said under the agreement, "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."

Previously, Walt Disney/Hearst/NBC Universal were partners for A&E Networks and Walt Disney/Hearst in Lifetime. Walt Disney and Hearst each had a 37.5% stake in A&E Networks, and NBC had 25%. For Lifetime Networks, Disney and Hearst were 50-50 partners.

Andrea Wong, president/CEO of Lifetime Networks, Nancy Dubuc, executive vice president and general manager of History, and Bob DeBitetto, president and general manager, A&E Networks & Bio Channel, will all report to Raven.

"The new company will be much greater than the sum of its parts, positioning these brands for a new level of success and performance," said Anne Sweeney, co-chairman of Disney Media Networks and president of the Disney/ABC Television Group.

"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," said Scott Sassa, president of Hearst Entertainment & Syndication.

Jeff Gaspin, chairman of NBC Universal Television Entertainment, added: "This transaction represents the next stage of this partnership and the evolution of some terrific media brands."