Lions Gate seeks to sell TV Guide channel
Company eyes substantial increase from the $242m it paid in 2009
Los Angeles: Lions Gate Entertainment, which agreed last week to acquire the independent studio Summit Entertainment, is seeking buyers for the TV Guide cable channel and website, according to an investor briefed on the deal.
The company is seeking a "substantial increase" on the $242 million (Dh888.9 million) it paid in March 2009, said the person, who declined to be identified because the briefing was confidential. Lions Gate began shopping TV Guide two months ago, the person said.
The studio, maker of the Saw horror films and series Mad Men, prefers to sell the channel and website together, the person said. In the six months ended September 30, TV Guide's loss widened to $20.3 million from $13.6 million a year earlier, according to Lions Gate regulatory filings. Revenue fell 11 per cent to $50.8 million.
Lions Gate sold a 49 per cent stake in the TV Guide channel and website to JPMorgan's One Equity Partners in May 2009 for $123 million. The bank retained an option for another 1 per cent.
Jon Feltheimer, Lions Gate's CEO, said last year the studio planned to sell non-core assets. In June, the company sold Maple Pictures, its Canadian distribution unit, for $38.5 million to Alliance Films.
Last week, the company announced it purchased Summit for $412.5 million in cash and stock.
