Lionsgate, Macrovision Close TV Guide Network Deal3/02/2009 10:37 AM Eastern
Lionsgate and Macrovision Solutions announced Monday the closing of the $255 million deal under which Lionsgate has acquired the TV Guide Network and TV Guide Online properties.
The companies previously announced the deal Jan. 5. That was after Macrovision had announced a similar deal with television producer Allen Shapiro and One Equity Partners, the hedge-fund arm of investment-banking giant J.P. Morgan, on Dec. 18 for $255 million, plus additional earn-out provisions.
After announcing the Lionsgate transaction, Macrovision noted that the earlier deal with Shapiro and One Equity allowed it to solicit other buyers and said it believed that Lionsgate had a better chance of raising the necessary capital and closing the deal quickly.
TV Guide Network currently has distribution to 83 million households. Lionsgate's other channel platforms include FEARnet, an on-demand horror film service operated with partners Sony and Comcast, which reaches 30 million subscribers, and Epix, the premium multiplatform channel with partners Viacom and MGM that is expected to launch in October 2009.
On the online front, TV Guide.com joins video-oriented Web site Break.com, in which Lionsgate has a 42% equity investment.
"TV Guide Network and TV Guide.com are a perfect fit for our entrepreneurial culture and business model of creating innovative market leaders in key niches," Lionsgate co-founder and CEO Jon Feltheimer said in a statement. "The acquisition of these companies reflects the continued growth of our television, channel platform and online businesses, and we look forward to working closely with our distribution, marketing and advertising partners to bring the full weight of our content creation and marketing strength to this important new asset."