Lions Gate Entertainment Corp. said Thursday it will sell a 49 percent stake in its recently acquired TV Guide channel to a group comprised of One Equity Partners and media entrepreneur Allen Shapiro for $125 million.
One Equity Partners, which is JPMorgan Chase? private equity branch, and Shapiro, who once ran Dick Clark Productions, earlier this year attempted to buy TV Guide from Macrovision Solutions. Macrovision terminated a tentative deal in January and in March sold the property to Lions Gate, the independent film studio based in Vancouver, Canada, with substantial operations in Santa Monica.
The investment will help fund Lions Gate? plan to turn TV Guide into an entertainment cable network similar to NBC Universal's Bravo channel, a person familiar with the deal told Reuters. Shapiro is chairman of the One Equity joint venture.
"The marriage of Lions Gate's tremendous content creation and marketing prowess, our financial resources and expertise and Allen Shapiro's media investment track record form the kind of winning combination that we have sought from day one,?One Equity Partners?Managing Director Greg O'Hara said in a statement.
Shares of Lions Gate were down 2 cents, or less than 1 percent, to $5.39 in midday trading on the Nasdaq.
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