TVG to Benefit From Corporate Merger
Updated: Thursday, July 13, 2000 11:14 AM
Posted: Thursday, July 13, 2000 11:14 AM
The stock price of TV Guide Inc., the parent firm of TVG, rose 27.3% Wednesday after the announcement that the company's acquisition by Gemstar International Group Ltd. had been completed. Completion of the merger, which followed notification that the U.S. Justice Department would not challenge the corporate union, sent TVGIA's stock up by 9 13/16 to 45 13/16 at 1:00 p.m. (EDT). Gemstar's stock also rose, increasing 11.00 to 70.00. The combined company will have a market value of $20-to-$25 billion, depending on its closing price Wednesday.
At the close of Wednesday's trading, GMST stock had risen to 69 3/4, up 10 5/8, with 10,254,900 volumes exchanging hands. TVGIA closed the day with 2,030,100 volumes being traded. The stock closed at 45 5/8, up 9 5/8 for the day.
“The impact for TVG is us being part of a much stronger company, which only helps us in terms of our ability to move our product out internationally, and which helps us domestically in being able to push distribution,” said Mark Wilson, TVG president.
Under the combined company, Henry Yuen will serve as chairman and CEO, with Peter C. Boylan III, Joe Kiener, and Elsie Leung serving as co-presidents and COOs of the company that will be named Gemstar-TV Guide International. The four executives will comprise the newly-created Office of the Chief Executive, with Leung also serving as chief financial officer. Wilson will remain as TVG president and continue to report to Boylan under the merged operation.
Gemstar is a multi-faceted technology and electronic consumer product company and the leader in imbedded chip technology, holding numerous patents in interactive technology.
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