At post time Macrovision shares were down more than 25% on news that the board had voted unanimously in favor of acquiring Gemstar-TV Guide in a cash-and-stock deal worth roughly $2.8 billion. From Forbes:

''Under the terms of the agreement, Gemstar-TV Guide shareholders will receive $6.35 in cash, or .02548 of a share of common stock in a new holding company that will include both Gemstar and Macrovision. The per share value of the transaction represents a 25.0% premium to the 10 day average closing price of Gemstar TV Guide's common stock prior to its review of strategic alternatives announced on July 9.''

Investors, however, were not as keen on the deal. Alleyinsider notes that Rupert Murdoch, a member of the Gemstar-TV Guide International, Inc. Board, ''found a way to offload his 41% stake in the company --ending the most significant losing bet he's made in the last decade.''

At a little after 2 p.m. Macrovision dropped 25.16%, or $6.54, to $19.45, and Gemstar sunk 17.39%, or $1.04 cents, to $4.94.

(image via scifi-toyz)