MUMBAI: Lionsgate and Macrovision Solutions Corporation have signed a deal wherein the former will acquire the TV Guide Network and TV Guide Online properties from Macrovision for $255 million in consideration.
Macrovision has terminated its previous agreement to sell such properties announced on 18 December, 2008. The transaction between Lionsgate and Macrovision is expected to close by 28 February, 2009, and is subject to certain indemnifications and customary closing conditions. The transaction will be funded with Lionsgate’s existing cash and available funds and the closing is not subject to financial performance requirements.
TV Guide Network is the 19th most distributed network and available in 83 million homes. TV Guide.com is one of the fastest-growing online entertainment destinations with over 15 million monthly unique visitors.
"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. 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. This deal is consistent with our track record of accretive and potentially transformative acquisitions that are establishing the foundation for sustainable long-term growth," said Lionsgate co-chairman and CEO Jon Feltheimer.
The TV Guide Network team will be joining Lionsgate. "This is a great opportunity to continue our transformation into a fully distributed, entertainment-focused network and web platform," added TV Guide Network president Ryan O’Hara.
Macrovision president and CEO Fred Amoroso too is delighted with the agreement with Lionsgate, he says It will bring a tremendous and unique media skill set to the ongoing development of both the TV Guide Network and TVGuide.com properties. In our previously announced transaction, prior to closing Macrovision was permitted to solicit and enter into other agreements to sell the TV Guide Network and TV Guide Online properties. 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. Throughout our divestiture process, speed, certainty to close and the overall terms of the transaction have been important considerations for us. We believe our agreement with Lionsgate represents an improvement for us on those considerations and the combination of these factors represents a positive result for Macrovision and its stockholders,"
The structure of the deal also allows Macrovision to utilize the strategic capabilities of TV Guide Online while remaining focused on Macrovision’s core competencies in technology, just as the previously announced transaction had provided. Specifically, Macrovision retains the key strategic on-line elements currently utilized through this site, namely its B2B grid syndications business, whereby the company licenses its online guide to other portals, and functionality that enhances its embedded guidance product offering, such as integration from embedded guides with online or mobile guides that allow for remote record.
