OpenGate Capital has agreed to buy TV Guide Magazine from Macrovision Solutions Corp. (Nasdaq: MVSN) for an undisclosed amount. The deal is expected to close around December 1, and is not subject to Macrovision shareholder approval.
Macrovision Solutions Corporation (NASDAQ: MVSN) today announced that it has reached an agreement to sell its TV Guide Magazine property to OpenGate Capital. The transaction is expected to close approximately December 1, 2008. The completion of the transaction is subject to customary closing conditions but is not subject to Macrovision stockholder approval.
The divestiture of TV Guide Magazine is consistent with Macrovision’s plans, outlined in January 2008 following the company’s announcement of the acquisition of Gemstar-TV Guide. Macrovision is focused on providing technology solutions and TV Guide Magazine was identified as a business not aligned with that core corporate strategy. Today’s sale of TV Guide Magazine is a continuing step in Macrovision’s execution of its strategy and direction.
“A primary goal of the Gemstar-TV Guide acquisition was the consolidation of key technology assets, including the interactive program guides, connected services and device connectivity needed to provide consumers with a uniquely simple digital home entertainment experience. The TV Guide Magazine divestiture marks a significant milestone towards achieving this goal as the streamlined business model improves the company’s ability to execute its strategic plan,” said Fred Amoroso, President and CEO of Macrovision.
Today’s consumers dictate how and when they engage with all forms of digital media. Macrovision sees music, movies, photos, videos and television programs transforming into personalized catalogs that users will be able to search, access and expand at the touch of a button. Interactive programming guides (IPGs), video and entertainment guidance technology and services added through the Gemstar-TV Guide acquisition position the company firmly at the center of this emerging entertainment landscape.
“TV Guide Magazine is a powerful media brand that serves the television and entertainment community by providing a combination of breaking news, behind-the-scenes features and photos, and exclusive stories on television’s biggest shows and stars,” said Andrew Nikou, Founder & Managing Partner, OpenGate Capital. “TV Guide Magazine’s president, Scott Crystal, and his management team, have done an outstanding job leading the unprecedented transformation of this entertainment industry icon. We are excited that Scott will lead the way as we build upon this success by investing in OpenGate Capital’s media and entertainment platform.”
“I am thrilled to continue the exciting journey leading TV Guide Magazine to new heights,” said Scott Crystal, President, TV Guide Magazine. “It is truly an ideal fit, since our new owners are committed to taking TV Guide to the next level in terms of their investment and desire to expand our unique franchise.”
The TV Guide Magazine business had been previously classified by Macrovision in discontinued operations. No gain or loss will be recognized for financial reporting purposes by Macrovision as a result of this divestiture.
About Macrovision Solutions Corporation
Macrovision is focused on providing a uniquely simple digital home entertainment experience by delivering solutions to businesses to protect, enhance and distribute digital goods to consumers across multiple channels. Macrovision’s technologies are deployed by companies in the entertainment, consumer electronics, cable and satellite, and online distribution markets to solve industry-specific challenges and bring greater value and a more robust user experience to their customers. The result of deploying Macrovision’s solutions is a simple end user experience for discovering, acquiring, managing and enjoying digital content. Today, Macrovision provides connected middleware, media recognition, interactive programming guides, copy protection and rich media, data and metadata on music, games, movies and television programming. The company also operates entertainment portals including http://www.tvguide.com and http://www.allmusic.com. Macrovision holds over 4,000 issued or pending patents and patent applications worldwide.
Macrovision is headquartered in Santa Clara, California, with numerous offices across the United States and around the world including Canada, Japan, Hong Kong, Luxembourg, and the United Kingdom. More information about Macrovision can be found at www.macrovision.com.
About OpenGate Capital
OpenGate Capital is an opportunistic private equity firm that acquires controlling interests in businesses with solid fundamentals which exhibit opportunities for operational improvements and growth. Established in 2005, OpenGate Capital has a global footprint with headquarters in Beverly Hills, California and a principal office in Paris, France. OpenGate is served by a seasoned team of M&A and operating professionals that bring the skills needed to acquire, operate and build successful companies. The partners of OpenGate have executed over 50 transactions worldwide ranging from corporate divestitures, turnaround acquisitions, industry consolidations and other special situations investments across a wide array of industries and geographical markets. For more information on OpenGate Capital, please visit our website at www.opengatecapital.com.