Reality Check in Store for New 'TV Guide' Owner

As a brand, it's something of an anachronism, but TV Guide could end up fetching a surprisingly nice price -- if its new owners don't botch the sale.

Last week, Macrovision took control of Gemstar-TV Guide Inc., and immediately began making preparations to sell its flagship weekly magazine but with a caveat: According to several sources, Macrovision CEO Fred Amoroso has made it clear he'd like to sell the print title only, while holding onto tvguide.com, which he wants for its listings. (Paid Content was the first to report on this plan.)

But aside from Amoroso, there are few, outside or inside the company, who think this scenario will fly. "The magazine just doesn't have value without the site," says an executive whose company is among the possible strategic buyers.

TV Guide executives recognize this; a number of them, including publishing group president Scott Crystal, have been trying to convince Amoroso that no buyer wants a magazine without a website in 2008. "He's stubborn, but our assumption is market forces will win out when he gets no bids," says an insider. A more plausible arrangement would have Macrovision holding onto the listings data and renting it out to the next owner of tvguide.com.

Once that happens, the prospects for a respectable sale price brighten considerably. Today, Gemstar-TV Guide is set to announce its first profitable quarter in more than three years. Internal projections have the magazine, which increased its page size and chopped its circulation in 2005, crossing over into the black by the end of 2008. While newsstand sales are down, partly because of cover price hikes, other metrics have been improving: The magazine's media reader age is down and its renewal rate is up. Its annual subscription revenues alone are approaching $100 million.

Meanwhile, staffers received an internal memo yesterday confirming reports that Debra Birnbaum would be the new editor in chief, replacing Ian Birch, who was laid off last week. Birch was one of about 10 magazine staffers let go; another 90 or so employees were culled from IT, corporate marketing and shared services.