Macrovision Sees Red in TV Guide2/14/2009 2:00 AM Eastern
Macrovision Solutions swung to a $210 million net loss in the fourth quarter, tied mainly to write-downs it took from the sale of three former TV Guide properties.
Macrovision reported revenue of $118.2 million — up from $103.2 million in 2007, and a net loss of $209.9 million ($2.06 per share), compared to a net profit of $9.2 million (17 cents per share) in the prior year.
The fourth-quarter net loss included a $208.3 million impairment charge related to the goodwill and intangible assets of TV Guide Network, horse racing channel TVG Network and TV Guide Online.
Macrovision agreed to sell all three properties in the fourth quarter — TV Guide Network and TV Guide.com to Lionsgate Entertainment for $255 million in cash; and TVG Network to United Kingdom electronic-gaming company Betfair Group for $50 million in cash.
Not included in the writedown was the company's iconic TV Guide magazine, which was sold to venture-capital firm OpenGate Capital in October for $1 in cash and the assumption of between $70 million and $100 million in subscription liabilities.
The impairment charges were tied to the difference between the value Macrovision had placed on the assets when it purchased its parent Gemstar-TV Guide International for $2.8 billion in April. Macrovision has stated that its main target in the deal was Gemstar's interactive programming guide technology, which Macrovision has incorporated into its own guide products. — Mike Farrell