Studio weighs divesting itself from Break Media
(Updated: 3:42 p.m. PST)
Lionsgate is going from buyer to seller.
The Vancouver-based studio has put TV Guide Channel and website up for sale, an individual with knowledge of the situation confirmed to TheWrap.
The news comes a week after Lionsgate completed a $412.5 million purchase of Summit,
A spokesman for Lionsgate declined to comment.
Lionsgate purchased TV Guide in 2009 for roughly $250 million and later sold a 49 percent stake in the company to One Equity Partners, an investment unit of JP Morgan Chase, to offset its costs.
Lionsgate does not own TV Guide Magazine, which is owned by OpenGate Capital.
However, Lionsgate will not sell its stake unless it can make a significant return on its investment, the individual told TheWrap.
Over the past year, Lionsgate has been divesting itself from properties that it considers to be non-core assets. In June, the studio sold Canadian distributor Maple Pictures to Alliance Films for approximately $40 million.
It is also weighing a sale of its 42 percent stake in the video ad network Break Media, according to an individual with knowledge of the deliberations.
TV Guide reported losses of $20.3 million during its most recent quarter as revenue dropped 11 percent.
A sale of TV Guide has been rumored for months, but it initially appeared as though studio would off-load the website, but retain the network. That no longer appears to be the game plan.
As for Lionsgate's Summit purchase, that has drawn a favorable response from Standard & Poor's. The credit rating agency raised its rating of the studio to creditwatch positive on Wednesday.
The potential sale was initially reported by Bloomberg.