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Macrovision Buys TV Guide for $2.8 Billion

Macrovision continues its business expansion with the purchase of Gemstar-TV Guide. The acquisition will cost Macrovision about $1.55 billion in cash and create a new company that will in owned with a 57% share by current Macrovision shareholders; the remaining 43% go to current Gemstar-TV Guide share holders. Of those 43%, nearly 18% will go to News Corp., which owns 41% of common stock of Gemstar-TV Guide.

The merger is expected to close by the second quarter of next year and will bring staff changes at the executive level: Fred Amoroso, chief executive officer and president of Macrovision will be the president and chief executive officer and James Budge, chief financial officer of Macrovision, will become chief financial officer of the combined company. The new board of directors will be comprised of four members to be designated by Macrovision, and three members to be designated by Gemstar-TV Guide. Gemstar-TV Guide CEO Rich Battista and CFO Bedi Singh will not be part of the new organization.

Macrovision said that the new company will enable “extensive libraries of commercial and personal protected content to be accessible on numerous devices through simple and intuitive guides.” For example, consumers will be able to pull up a guide on their TV and receive personalized content and information of TV shows, read movie reviews before purchasing or renting a film, view personal photos, or tap into their music library. According to the company, such an experience is prevented today by “interoperability barriers between devices and services.” The new company aims to “build and integrate open technology, content protection and distribution offerings that enable the delivery of digital media to consumers across multiple platforms and channels,” Macrovision said.

In November, Macrovision announced the acquisition of the Blu-ray content protection technology BD+.