Corporate News: CBS Nears Deal to Buy Half of TV Guide Network
CBS Corp. is on its way to purchase half of TV Guide Network. It is expected to by the 49%, along with the option to buy 1%, of the entertainment channel owned by One Equity Partners, the private-equity arm of JP Morgan Chase. The expected cost of the transaction is $100 million.
The TV Guide Network is known, by most TV watchers, as a channel with listings for channel surfers. Over the years, it has become irrelevant as cable operators now offer customers interactive programming guides. They no longer have to change the channel to see what is scheduled to play on other channels. The attractive selling point is that the TV Guide Network reaches 80 million people. Lions Gate Entertainment Corp., which own the other 50% of the TV Guide Network, has been trying to increase the channel’s entertainment content in an effort to improve its value.
It’ll be tough for CBS to change the TV Guide Network’s declining popularity, but, by building the top-rated broadcasting network, it has proven that it is up for the challenge.
Written by: Constantine Kostikas
Source: The Wall Street Journal