DICK CLARK - LIONSGATE SELLS OFF 49 PERCENT OF ITS TV GUIDE PROPERTIES

LIONSGATE SELLS OFF 49 PERCENT OF ITS TV GUIDE PROPERTIES

Lionsgate has agreed to sell 49 percent of its TV Guide Network and TV Guide Online to One Equity Partners, a unit of JPMorgan Chase, and Allen Shapiro, former head of Dick Clark Productions. Lionsgate had acquired the TV Guide properties from Macrovision Solutions Corp. in January for $255 million and is selling the 49-percent stake for $123 million in cash (roughly 49 percent of what it paid for the entire business). Lionsgate executives have been feuding with Carl Icahn, one of its largest shareholders, who has claimed that they paid far too much for the TV Guide properties. They are expected to use some of the cash towards overhauling the TV Guide cable channel, which has been hurt by the number of other on-screen program guides being offered by cable providers, and towards upgrading the TV Guide website. They may also have to set aside some of the cash to fight off a proxy battle by Icahn.

29/05/2009