Lionsgate Sells TV Guide Stake

SANTA MONICA: Just under six months since reaching a deal to acquire TV Guide Network and its accompanying website from Macrovision Solutions Corporation, Lionsgate is giving up a 49-percent stake in the venture to One Equity Partners for $123 million.

One Equity Partners (OEP), the global private-equity investment arm of JPMorgan Chase, and Allen Shapiro, the former CEO of dick clark productions, had previously reached their own deal to acquire TV Guide from Macrovision in December 2008. A month later, Macrovision announced that that deal had been terminated, and sold TV Guide to Lionsgate. The deal closed in late February for approximately $250 million.

OEP is now shelling out $123 million for the 49-percent stake in the network and the TVGuide.com online business and retains the option of buying another 1 percent. Shapiro has also joined the partnership and will serve as chairman of the joint venture, partnering with Jon Feltheimer, Lionsgate’s co-chairman and CEO, to lead the channel’s executive committee, supported by Lionsgate’s television management team. TV Guide Network reaches approximately 83 million homes and is one of the 30 most widely-distributed cable networks.

"We are delighted to welcome both One Equity Partners and Allen Shapiro as partners in TV Guide Network and TVGuide.com," said Feltheimer. "Given their longstanding interest in the channel and the alignment of our interests, they are the ideal partners. OEP is a distinguished and well-capitalized firm that shares our vision of building a dynamic entertainment channel driven by Lionsgate-branded content that will prove to be a major force within our industry."

"I believe that TV Guide Network and TVGuide.com are unique assets which are difficult to replicate and create enormous opportunities for sustained future growth," said Shapiro.

OEP’s managing director, Greg O’Hara, added: "The marriage of Lionsgate’s tremendous content creation and marketing prowess, our financial resources and expertise and Allen Shapiro’s media investment track record form the kind of winning combination that we have sought from day one."