Macrovision acquiring Gemstar-TV Guide for $2.8B

Copy-protection and rights-management solutions developer Macrovision announced it will acquire entertainment and technology provider Gemstar-TV Guide International in a cash and stock deal valued at about $2.8 billion. Macrovision will offer Gemstar shareholders a choice of $6.35 in cash--a 6.2 percent premium from Thursday's closing price of $5.98--or a quarter of a share of common stock in a new holding company that will own both Gemstar and Macrovision for each share owned. When the deal is complete, Macrovision stockholders will own about 53% of the combined company and former Gemstar stockholders will own about 47%. The deal is expected to close early in Q2--Macrovision CEO Fred Amoroso and CFO James Budge will hold the same titles at the combined company.

The combination of Macrovision and Gemstar-TV Guide brings together assets like interactive program guide technologies, intellectual properties and a customer base spanning consumer electronics manufacturers, cable, satellite and IPTV operators, and mobile and online service providers. Gemstar merged with TV Guide Inc. in a $14.2 billion deal finalized in 2000; its TV Guide Mobile subsidiary markets an electronic service guide for mobile TV in association with mobile broadcast software supplier Roundbox. Macrovision last month signed a definitive agreement to acquire consumer entertainment database provider All Media Guide.

For more on the Macrovision/Gemstar-TV Guide deal:
- read this release

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