Macrovision sells TV Guide to OpenGate
Macrovision Solutions Corporation has announced it will sell TV Guide to private equity firm OpenGate Capital.
Macrovision, according to a company news release, described the sale as in keeping with the company's plans outlined in January, following the announcement of its acquisition of Gemstar-TV Guide. According to Macrovision, TV Guide was identified as a business not in line with the core corporate strategy.
“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,” said Fred Amoroso, president and CEO of Macrovision, in the release. “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.”
Macrovision will retain TV Guide.com.
The magazine, with some 21 million weekly readers, has a rate base of 3.2 million.
“From our perspective, we're thrilled for a number of reasons,'' said Scott Crystal, president of TV Guide. “If you look at the marketplace and the financial disarray, to get a deal done that is positive, where someone is actively purchasing you and investing in you now and in the future is certainly atypical.”
The company will maintain its offices in New York and Radnor, PA, Crystal said. Further details on OpenGate's future plans will be discussed after the closing, he said.
OpenGate Capital is a Beverly Hills, CA-based private equity firm. Financial details of the deal, expected to be completed by Dec. 1, were not disclosed.