Lionsgate, the second tier US studio group this week bought the TV Guide Network (TV channels) and the TV Guide online properties for a staggering $255 million. Macrovision has had them on the market since it acquired Gemstar TV Guide, the parent, in a $2.8 billion merger at the end of 2007.
Macrovision seemed to have completed the sale of these assets in December, along with other TV Guide properties, to private equity firm OpenGate Capital, a sale which was always planned after Macrovision merged with Gemstar for its EPG patents and onscreen TV guide.
Macrovision had some opt outs in the deal and has exercised them in order to take the properties to Lionsgate on what the company said were similar terms. It is likely that the worsening economic conditions had something to do with unraveling the deal.
The new deal will now close in February 2009, and will be funded by Lionsgate’s existing cash and available funds. The TV Guide Network is the 19th most distributed US TV network available in 83 million homes. TV Guide.com is one of the fastest-growing online entertainment destinations with over 15 million monthly unique visitors.
The original price tag that Macrovision CEO Fred Amoroso had on the deal was $400 million when he was hawking the properties around in the middle of last year, and given the change in economic conditions, the $255 million sale sounds like quite an achievement.
“This is tremendous real estate, rarely available, that fits extremely well with our strategy of combining content creation, distribution and direct access to the consumer,” said Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer. “The transaction pairs our vast array of content with a branded channel and online platform available in 83 million homes and is part of our broader strategy of growing our global portfolio of channels to reach audiences worldwide.”
The structure of the deal allows Macrovision to continue to use the TV Guide Online, presumably allowing set tops and licensees of its technology to link directly to the site. Macrovision retains the intellectual property involved in the all the Gemstar EPG patents, and can licensed the online guide to embedded offerings.
More than 82 million TV households currently enjoy Macrovision licensed programming guides which provide viewers with program listings.