Comcast Corp.'s (CMCSA, CMCSK) NBCUniversal unit confirmed plans
to sell its minority stake in A&E Television Networks for $3.03
billion to joint-venture partners Walt Disney Co. (DIS) and Hearst
Corp.
A&E agreed to redeem NBCUniversal's 15.8% stake in a deal to
be paid in cash and in the form of a senior note issued by A&E,
Comcast said in a filing Tuesday with the Securities and Exchange
Commission.
Comcast said earlier this year that it had exercised an option
to sell the stake, which was widely expected to be sold to Disney
and Hearst. Last week, it was reported by various outlets,
including The Wall Street Journal, that a deal was near.
Comcast acquired its stake in A&E--home to the History
Channel, the Biography Channel and Lifetime--when it purchased a
controlling interest in NBCUniversal from General Electric Co. (GE)
last year.
The stake sale implies a valuation of almost $20 billion for all
of A&E. According to a note from Davenport Research, the
A&E group of channels ranks fourth in total prime time viewers,
with the top three spots taken by Viacom Inc. (VIA, VIAB), Time
Warner Inc. (TWX) and NBCUniversal. A&E is expected to have
about $1.1 billion in cash flow this year, Davenport said.
Write to William Launder at william.launder@dowjones.com