Gemstar-TV Guide Buys SkyMall
Entertainment media company Gemstar-TV Guide International will merge with SkyMall Inc. under a deal in which Gemstar will purchase all of SkyMall's common stock.The deal is expected to expand Gemstar-TV Guide's television-based commerce business.
Phoenix-based SkyMall, founded in 1989, is best known for its in-flight merchandise catalog. Shareholders will receive consideration of $3 per share, which consists of $1.50 in cash and 0.038 shares of Gemstar-TV Guide common stock, for each share of SkyMall's common stock.
Robert Worsely, SkyMall's chairman/CEO, will remain in his position following the merger, which is expected to be finalized this summer.
Gemstar holdings include TV Guide magazine, with a circulation of 10 million, and TV Guide Web sites, which have 3 million unique visitors per month.
SkyMall's in-flight catalog is available on more than 73 percent of domestic airlines and reaches 540 million domestic flight passengers annually. The company's Web site, skymall.com, offers an expanded selection of products and services.
