Lionsgate said it will sell a 49% stake in TV Guide Network - which it recently acquired from Macrovision Solutions -- to JPMorgan Chase's private equity arm and TV producer Allen Shapiro for about $123 million in cash.
Under the terms of the deal, One Equity Partners, the global private equity investment arm of JPMorgan Chase, will become a 49% equity partner in Lionsgate's TV Guide Network and TVGuide.com. One Equity Partners retains the option of buying another 1% of TV Guide Network and TVGuide.com under certain circumstances.
Lionsgate completed the acquisition of TV Guide Network, which reaches approximately 83 million homes, in February for approximately $255 million.
Shapiro will be named chairman of the joint venture, and along with Lionsgate co-chairman and CEO Jon Feltheimer will lead TV Guide Networks' executive committee.
Macrovision had previously announced a deal to sell TV Guide Network to Shapiro and One Equity Partners, before scrapping that in favor of selling to Lionsgate.
"We are delighted to welcome both One Equity Partners and Allen Shapiro as partners in TV Guide Network and TVGuide.com," Feltheimer said in a statement. "Given their longstanding interest in the channel and the alignment of our interests, they are the ideal partners. OEP is a distinguished and well-capitalized firm that shares our vision of building a dynamic entertainment channel driven by Lionsgate-branded content that will prove to be a major force within our industry."
For his part Shapiro said, "I believe that TV Guide Network and TVGuide.com are unique assets which are difficult to replicate and create enormous opportunities for sustained future growth."
One Equity Partners managing director Greg O'Hara commented, "The marriage of Lionsgate's tremendous content creation and marketing prowess, our financial resources and expertise and Allen Shapiro's media investment track record form the kind of winning combination that we have sought from day one."
Macrovision had acquired TV Guide Network as part of its $2.8 billion acquisition of Gemstar-TV Guide International. The company is planning to change its name this summer to "Rovi Corp.," pending approvals.