We now know how much a private equity firm paid to take TV Guide Magazine off the hands of Macrovision. Here’s a hint: You can’t buy a single item at Starbucks for the same amount.
In announcing the acquisition OpenGate Capital called TV Guide an “entertainment industry icon.” So what’s an icon worth these days? One buck. That’s right, a single picture of George Washington in green ink.
Not only that, but Macrovision is lending $9.5 million on attractive terms to Sample Media LLC, the new company formed by OpenGate Capital to own and publish TV Guide. Sample Media will acquire the assets of TV Guide and certain liabilities associated with the magazine business.
RBR/TVBR observation: What OpenGate Capital has to worry about now is whether it overpaid. The true value of some publications today may be a negative number. We have to wonder whether Macrovision would even want to foreclose and take the magazine back if the new owner defaults on that loan.
RBR/TVBR posted this report to demonstrate 1 thing – Print is DOA but content is King but only if you Control the Content with today’s internet distribution multi platform.
Have a comment on what print publications are DOA. Then comment and lets see where the conversation takes us.