NEW YORK Macrovision has pulled the plug on a preexisting deal to sell TV Guide Network, opting instead to unload the property to the film studio Lionsgate in exchange for $255 million in cash.
Three weeks ago, Macrovision announced it would sell the program-listings network to a group of investors led by producer Allen Shapiro and One Equity Partners, J.P. Morgan Chase’s $8 billion private equity fund. In a statement released early Monday evening (Jan. 5), Macrovision president and CEO Fred Amoroso said a Lionsgate deal would make for a swifter, easier close than the previously announced Shapiro/One Equity agreement.
“We believe this transaction improves the probability and the timing of closing the transaction, while providing for non-contingent consideration comparable to our previously announced transaction,” Amoroso said. “Throughout our divestiture process, speed, certainty to close and the overall terms of the transaction have been important considerations for us.”
Per terms of the deal, Macrovision will turn over TV Guide Network and TV Guide Online to Lionsgate by Feb. 28. The Shapiro/One Equity deal was not expected to close until April 1.
The $255 million sticker price is the same amount Macrovision was seeking in its original consideration with Shapiro/One Equity, although an earn-out provision tied to the earlier agreement could have beefed up the total amount by as much as $45 million.
The structure of the deal calls for Macrovision to retain TV Guide’s b-to-b grid-syndications business, which allows the company to license its online program guide to other portals.
Macrovision also keeps the horse-racing channel TVG
Perhaps most widely known for its anti-piracy technologies, Macrovision has been selling off Gemstar-TV Guide piecemeal since acquiring it in December 2007 for $2.8 billion in cash and stock. (The deal closed in May 2008.) In October, Macrovision sold TV Guide magazine to OpenGate Capital for a token transaction fee of just $1.
Now available in some 83.1 million households, TV Guide Network is evolving from a first-generation listings service to a more traditional programming destination, featuring glitz-and-dish fare like Hollywood 411 and The Fashion Team.
“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 CEO Jon Feltheimer. “The transaction pairs our vast array of content with a branded channel and online platform ... and is part of our broader strategy of growing our global portfolio of channels to reach audiences worldwide.”
