Lionsgate to Acquire TV Guide Network

SANTA CLARA/SANTA MONICA,
January 6: Terminating a previously announced deal with Allen Shapiro and private-equity
firm One Equity Partners, Macrovision Solutions Corporation has agreed to sell
the TV Guide Network and TV Guide Online to Lionsgate.

The price tag, of $255
million, is the same amount for which Macrovision was due to sell off the
assets to Shapiro, the former CEO of dick clark productions, and One Equity
Partners. That deal was announced on December 18. "In our previously
announced transaction, prior to closing, Macrovision was permitted to solicit
and enter into other agreements to sell the TV Guide Network and TV Guide
Online properties," said Fred Amoroso, the president and CEO of
Macrovision. "We believe this transaction improves the probability and the
timing of closing the transaction, while providing for non-contingent
consideration comparable to our previously announced transaction. Throughout
our divestiture process, speed, certainty to close and the overall terms of the
transaction have been important considerations for us. We believe our agreement
with Lionsgate represents an improvement for us on those considerations and the
combination of these factors represents a positive result for Macrovision and
its stockholders."

The deal with Lionsgate is
due to close February 28. It will be funded by Lionsgate's existing cash and
available funds.

"This is tremendous
real estate, rarely available, that fits extremely well with our strategy of
combining content creation, distribution and direct access to the
consumer," said Jon
Feltheimer, Lionsgate's co-chairman and CEO. "The transaction pairs
our vast array of content with a branded channel and online platform available
in 83 million homes and is part of our broader strategy of growing our global
portfolio of channels to reach audiences worldwide. This deal is consistent
with our track record of accretive and potentially transformative acquisitions
that are establishing the foundation for sustainable long-term growth."

At Lionsgate, TV Guide
Network will join a growing channels portfolio that includes FEARnet, a VOD
offering launched with Sony and Comcast; the premium entertainment channel
Epix, which is expected to launch in October with partners Viacom and MGM; a
42-percent interest in the online destination site Break.com; and two new
channels, Thrill and Kix, which will be launched across Asia under the
TigerGate brand later in the year.

—By Mansha Daswani