Macrovision to Buy Gemstar-TV Guide for $2.8B

Gemstar-TV Guide International (GMST) agreed Friday to be acquired by Macrovision Corp. (MVSN) for $2.8 billion in cash and shares. The cash portion is 6.8% higher than Gemstar's Thursday close, and the stock portion is 11% based on Thursday's prices. Rupert Murdoch's News Corp. (NWS), which has a 41% stake in Gemstar, had called for the company to sell itself (full story). Macrovision arranged a $650M loan to help finance the deal.

Gemstar publishes TV Guide Magazine, and furnishes onscreen listings to cable-TV operators. Macrovision's digital content management products, such as cable scramblers, prevent unauthorized copying and viewing of video and music, and unauthorized broadcasts on pay-per-view cable and satellite networks. The merger "will enable extensive libraries of commercial and personal protected content to be accessible on numerous devices through simple and intuitive guides," the companies said. "For example, consumers will be able to pull up a guide on their TV and receive personalized content and information regarding their favorite TV shows, read movie reviews before purchasing or renting a film, view personal photos, or tap into their music library." JPMorgan (JPM) and UBS (UBS) served as advisors.

Sources: Press release, Bloomberg
Additional Reading: Macrovision Q3 2007 Earnings Call Transcript

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