In his annual letter to employees, Hearst Corp. CEO Steven Swartz said he expects strong results in the television unit and also hinted at M&A deals that could give local stations and A+E Global more scale.
“The return of the election cycle in the U.S. along with having the Super Bowl and the Winter Olympics on our NBC-affiliated stations should help produce a strong year for Hearst Television,” Swartz wrote. “That said we are watching carefully as the television world moves toward greater consolidation, as the battle for Warner Bros. Discovery illustrates. At a time when even Netflix doesn’t feel itself big enough without further acquisition, we are on the lookout for ways we can give our outstanding leadership teams at our stations and at A+E Global Media the scale they need to compete in a world of YouTube, Amazon, Apple and Netflix.”
A+E Global, the 50-50 joint venture with Disney that owns cable networks History Channel, A&E and Lifetime, last year hired Wells Fargo to help it explore strategic options. While the decline of cable TV would make a sale of the company one potential strategic option, it could also partner with another linear parent. A number of M&A deals have been made over the past year or two in the sector, including Comcast spinning off most of its cable properties into a new stand-alone company, Versant, and Warner Bros. Discovery intending to do the same.
The local TV sector is also entering into a period of dealmaking amid a rethink of the longtime cap on ownership by a single company. Nexstar, the No. 1 station owner, is set to acquire rival Tegna in a deal that would give the combined company reach to 80% of U.S. households, more than double the current 39% limit. As that transaction has moved toward the finish line, Sinclair also has taken a run at E.W. Scripps, whose board rebuffed the unsolicited offer.
The privately held Hearst said it set records in 2025 for revenue, which ticked up 3% over 2024’s mark to reach $13.5 billion, and profit. While Swartz’s letter did not disclose the exact profit figure, he said 60% of profit is now generated by business-to-business brands like the Fitch bond ratings agency, up from 10% in 2010.
Hearst is best known for its portfolio of consumer brands like Esquire magazine as well as local stations and the company’s founding asset, newspapers. It also owns 18% of ESPN, having acquired the stake in 1990.
Because of the company’s ties to Disney via ESPN and A+E, Swartz included a shoutout to the “extraordinary leadership” of Bob Iger, who is winding down his tenure as CEO. He also mentioned CEO-designate Josh D’Amaro as well as Dana Walden, who is becoming president and chief creative officer.
“We are seeing very strong ratings for games and studio programming alike and a very robust market for ESPN’s live advertising inventory, and all this should make for a very strong year at ESPN, under Chairman Jimmy Pitaro,” Swartz wrote.
Strength in B2B “provides a solid foundation for our consumer media units,” Swartz asserted, noting the company has expanded it newspaper division, acquiring the Dallas Morning News and the Austin American-Statesman.