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Article

Title: Macrovision Buying Gemstar-TV Guide for $2.8 Billion

Author: Kim, Ryan Article Type: Company
Source: San Francisco Chronicle, pC1(2) Publication Date: Dec 8, 2007
URL of Publication: http://www.sfgate.com

Macrovision Corp. announced it is buying Gemstar-TV Guide in an attempt to create an interactive portal that will provide consumers the ability to mange their television content and personal videos, music and pictures all through their television screen. Gemstar supplies onscreen listing to cable-television operators and is the publisher of 'TV Guide Magazine.' The new platform would pull from Gemstar's television program listing information and blend it with Macrovision's technology, which helps companies protect and distribute their content securely. In question is the future of 'TV Guide Magazine,' which has a circulation of just 3.2 million today compared to 17 million in 1988. The $2.8 billion deal sent both Macrovision and Gemstar's stock tumbling. To help finance the deal, Macrovision will raise $800 million in new debt. Ultimately, Macrovision stockholders will own about 53 percent of the new company and Gemstar shareholders will retain the rest. Gemstar Chief Executive Rich Battista and Chief Financial Officer Bedi Singh will leave the proposed new holding company and Macrovision CEO Fred Amoroso will remain as chief executive of the combined venture.

Companies:
Gemstar-TV Guide International Inc Macrovision Corp

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