This Friday, Macrovision announced the signing of an agreement to acquire Gemstar-TV Guide for $2.8 billion in cash and stock. After the Gemstar acquiring, the company will permit consumers to personalize their on-screen TV menu with access to information about their favorite shows, movie reviews, personal photos and music libraries.

This agreement brings the Gemstar-TV Guide $6.35 in cash, or .02548 of a share of common stock in the new holding company, which will include Gemstar and Macrovision. The per share price includes a 25 percent premium to the 10 day average closing price of Gemstar’s common stock prior to July 9, when the review of the strategic alternatives were announced.

The deal was unanimously voted by the Macrovision board and it is expected to be closed in the second quarter of 2008. The acquisition will bring Macrovision shareholders one share of the new holding company for every previously Macrovision share held. This way, after the completion of the transaction, Macrovision shareholders will own about 53 percent of the new company and the Gemstar shareholders the remaining of 47 percent.

In financing its purchase Macrovision will have to raise $800 million of new debt of which JP Morgan Chase and Merrill Lynch have agreed to commit funds.