Gemstar, TV Guide Approve Merger

Shareholders of both Gemstar International and TV Guide, Inc. have approved the proposed merger of the two companies in a stock deal worth $9.2 billion. The closing is expected after it receives expected regulatory approval in the second quarter.

The new company will be called TV Guide International and be based in Pasadena, CA. Under the terms of the agreement, TV Guide shareholders will receive .6573 of a share of Gemstar common stock for each share of TV common stock outstanding at the time of the merger.

Henry Yuen will serve as chairman and CEO of the combined company, and as co-president and COO in charge or operations traditionally under Gemstar. Joe Kiener and Pete Boylan will each serve as co-president and COO in charge of certain TV Guide businesses.

After the merger, Liberty Media and News Corp. will each own about 19% of TV Guide International. The two companies plan to combine their technologies to bring enhanced electronic program guides (EPGs) to broadcast, the Internet and other media.

Edited by Tom Butts