US TV Guide Agrees to $2.8bn Sale

11 December 2007

SUNNY VALE, California: Security software specialist Macrovision has inked a $2.8 billion (€1.9bn; £1.37bn) cash and stock deal to acquire Gemstar-TV Guide International.

The latter is a multiplatform media business which publishes TV Guide magazine, runs a cable channel/interactive program guide and supplies onscreen listings to operators.

The deal will result in the departure of Gemstar ceo Rich Battista, while the merged entity will be helmed by Macrovision president/ceo Fred Amoroso.

Gemstar has been under pressure from media titan News Corporation, a 41% stakeholder, to review its strategic options.

Comments Battista: "We believe that the combined entity, with its complementary technologies, customers and global presence has the potential to redefine the consumer entertainment experience and drive significant additional stockholder value."

Gemstar came under Securities and Exchange Commission scrutiny over its accounting practices between 2000 and 2002.

In 2005, its founder and former ceo Henry Yuen pleaded guilty to obstruction of justice; and in 2006 a US federal judge ordered him to pay $22.3m for fraudulently inflating revenue.

Data sourced from Adweek (USA); additional content by WARC staff