“Macrovision’s recent disclosure of the terms of the sale of TV Guide need to be taken into perspective, given the magazine’s history and unprecedented relaunch in 2005.
TV Guide is a company with an exceptionally strong foundation, built around a subscriber base of over 3 million, a weekly readership in excess of 21 million, a powerful brand that commands trust and loyalty, and a world class organization able to produce a leading entertainment magazine with stunning photography and unique features-driven editorial content.
However, the magazine’s reinvention from a listings guide to a contemporary television entertainment magazine has been not only highly promising and successful to date, but has also been a very costly undertaking. With losses over $20 million in 2007 and further losses expected in 2008, all of this combined with significant deferred subscription and other operational liabilities, OpenGate is stepping in with the commitment to successfully complete the magazine’s turn-around, which targets restored profitability by the end of 2009, and to re-establishing TV Guide as the premier television entertainment magazine in the country.
This commitment will enhance the value of this unique franchise and is a tribute to the underlying strength and potential of the brand that has so far demonstrated its ability to withstand the test of time.”
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