Yesterday, after hearing about OpenGate Capital‘s purchase of TV Guide we wondered why the company would buy the struggling pub, writing, “Honestly, it’s a little hard to understand what OpenGate sees in the magazine, even if the purchase was for an absolutely rock bottom price.”
Well, it turns out that was 100 percent the case. Advertising Age‘s Nat Ives found out that the investment company bought the mag for a grand total of $1. Furthermore, Macrovision — which owned TV Guide — will give OpenGate a $9.5 million loan at three percent interest, a great deal in these uncertain times.
But still, the magazine lost $20.3 million in 2007. What is OpenGate thinking? Its managing partner Andrew Nikou told Ives his company’s thought process: “The reason we acquired this business is simple. It needed additional investment. We’re investing in this company to take it to the next stage.” Good luck with that, guys.