A & E Television to acquire life

LOS ANGELES - A & E Television Networks announced Thursday that it acquires Lifetime Entertainment Services, which is the home of "Project Runway" in a stable of profitable channels including A & E and History Channel. The terms of the treaty, which should be completed by the end of the year, were not disclosed. A & E Television Networks is a joint venture between The Walt Disney Co., Hearst Corporation and General Electric Co. 's NBC Universal. Life is already owned 50-50 by Disney and Hearst. Under the agreement, NBC Universal in May to choose or be forced to leave the company within 15 years, so that partners of Disney and Hearst in the group 50-50. The acquisition is expected to result in cost savings by merging the sales forces of advertising and corporate overhead, and should be positive for the Disney shareholders, said David Joyce, an analyst at Miller Tabak & Co. "It is the gradual rationalization of operations to lead to better margins and was more of a game on the cable networks over time, "he said. "He did not move the needle for Disney in the general scheme of things, but it would skew positive." NBC Universal is the junior partner in A & E Television Networks, 25 percent compared to 37.5 percent for each of Disney and Hearst is a private place. If no cash was exchanged, the involvement of NBC Universal in society would be reduced, which is less a strategic position, "said the analyst Tuna Amobi, Standard & Poor's. Moreover, the target audience the lives of women, with the aim of demographic provides for NBC Universal Oxygen overlap. "This is a clear path for ABC may leave," Amobi said. Lifetime, A & E and History channels are among the top 10 cable TV. should be alone together, the three channels in about $ generate 2.2 billion in total advertising and subscription fees this year and about $ 740 million in cash, according to research firm SNL Kagan. With the addition of channels Life, the group now: A & E Network, History, Lifetime Television, Lifetime Movie Network, Bio, History International, Lifetime Real Women, History en Espanol, Military History and Crime & Investigation Network. The Disney shares rose 3 cents to $ 27.03 Friday afternoon trading. General Electric stock at 11 cents at $ 14.22.