Macrovision Sells TV Guide Assets to Lions Gate

LOS ANGELES -- Macrovision Solutions (MVSN Quote) has canceled its deal to sell the TV Guide Network and TVGuide.com for $255 million to Allen Shapiro and One Equity Partners, and will instead sell them to movie studio Lions Gate Entertainment (LGF Quote) for the same price but better terms.

The new deal moves ahead the closing target time by about a month to Feb. 28 and reduces the payments Macrovision might have to make if the assets don't perform as well as they had in the past after the sale.

"Speed, certainty to close and the overall terms of the transaction have been important considerations for us," Macrovision Chief Executive Fred Amoroso said in a statement Monday, noting the new agreement "represents an improvement for us."

Macrovision was allowed to shop its previous deal around for better terms up until the closing with no penalty, according to Macrovision Chief Financial Officer James Budge.

Lions Gate Chief Executive Officer Jon Feltheimer said the new assets were a good fit.

"The transaction pairs our vast array of content with a branded channel and online platform available in 83 million homes," he said in a statement.

Macrovision, which designs software that prevents the copying of videos, acquired the TV Guide properties earlier this year when it bought out Gemstar-TV Guide International Inc. for $2.3 billion.

The company, which bought Gemstar for its programming data, sold TV Guide magazine to OpenGate Capital for an undisclosed sum in October.

Excluding the TV Guide Network business, Macrovision said it expects adjusted earnings next year to come in at $1.15 to $1.45 per share with sales of $435 million to $475 million.

Macrovision shares fell 38 cents, or 2.9%, to close at $12.95 Monday, while Lions Gate shares fell 19 cents or 3.3% to $5.61.