Macrovision Solutions Corporations has crossed off a deal with Allen Shapiro and One Equity Partners to sell the TV Guide Network and TVGuide.com for $25 million. The Studio will instead be sold to Lions Gate Entertainment corp. for the same sum but better terms.
The deal shortens the time to the deal’s closing by a month, setting it at February 28. It also reduces payments Macrovision may be forced to make if TV Guide doesn’t perform as well after the deal as in the past.
Macrovision’s chief executive Fred Amoroso stated to press on Monday that the company considered speed, certainty to close and overall transaction terms to be important factors in deciding the deal. He went on to say that the new agreement is an improvement over the old one.
Macrovision was able to pull the switch as it was allowed to consider alternatives for the deal and look for better terms until closing time with no penalties, according to James Budge, Macrovision’s Chief Financial Officer.
Lions Gate’s Chief Executive Officer Jon Feltheimer called the new assets a new fit, as the transaction complements the company’s wide array of content with a branded channel and an online component available to 83 million users.
Macrovision’s business is in designing software for Digital Rights Management on videos, and acquired TV Guide earlier this year as part of buying out Gemstar-TV Guide International Inc. for $2.3 billion.
The company bought Gemstar for its programming data and sold off TV Guide magazine to OpenGate Capital earlier in October for an undisclosed sum.
Macrovision’s adjusted earnings next year, excluding the TV Guide Network Business are expected to rise to $1.15 to $1.45 per share with sales of $435 million to $475 million
Macrovision’s shares dropped 38 cents, that is 2.9 percent, to $12.95 on Monday, and Lions Gate shares dropped 19 cents, that is 3.3 percent to $5.61.
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