NEW YORK (CNN/Money) - Walt Disney's ratings-challenged ABC television network has entered a production deal with HBO, the cable TV network that produces such critically acclaimed shows as "Sex and the City," "The Sopranos" and "Six Feet Under," CNNfn learned Monday.

Under the pact, the struggling TV arm of Walt Disney Co. (DIS: Research, Estimates) will pay a start-up fee and then provide all the production costs for the shows HBO will develop and, if put on the air, produce.

Sarah Jessica Parker (left) and Kim Cattrall (right) in HBO's critically acclaimed show "Sex and the City." (Photo: HBO)

ABC will establish a development fund the HBO unit will use to sign talent and producer deals and buy scripts for potential projects, according to entertainment trade magazine Variety.

As a result, ABC will own whatever shows it decides to approve as pilots or series. The HBO arm will be able to sell projects to other networks should ABC decline them, but ABC will maintain ownership of the program, according to the publication.

HBO does have an option to share the financing of any series if it wants a higher percentage of any potential profit.

The deal will give ABC first crack at all programming developed by HBO Independent Productions, including both series and long-term projects.

Both HBO and CNN/Money are subsidiaries of AOL Time Warner (AOL: Research, Estimates).  

-- from staff and wire reports