Regulators Approve Gemstar Purchase

Regulators Approve Gemstar Purchase
Photo: Anne M. Eberhardt/Blood-Horse Publications
Antitrust regulators cleared security-software maker Macrovision Corp.'s $2.8 billion purchase of television listings company Gemstar-TV Guide International, Inc., a government agency recently announced.

Analysts have criticized the deal, which was announced last month, as a bad match. Los Angeles-based Gemstar is much larger, with more than double the employees and revenue than Santa Clara, Calif.-based Macrovision. Gemstar is the parent company of the TVG horse racing television network.

Macrovision believes it can blend its anti-piracy tools for digital video, music and games with Gemstar's interactive program guides to make it easier for consumers to gain secure access to entertainment on a wide variety of electronic devices.

The Federal Trade Commission included the sale on a list of transactions that received an "early termination" of their antitrust reviews. Early termination refers to the completion of a review by the FTC or Justice Department before the end of a 30-day period required under antitrust law.

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