CBS and Lionsgate have entered into a 50/50 partnership for the US entertainment cable network TVGN and the website TVGuide.com. The basic cable network, available in more than 80 million homes, will continue to be entertainment-focused, with a specific rebranding and programming strategy to be announced at a later date.
The venture will combine CBS’s programming, production and marketing assets with Lionsgate’s resources in motion pictures, television and digitally delivered content.
Under the terms of the deal, CBS will acquire a 50 per cent stake in TVGN and TVGuide.com. CBS plans to purchase the ownership interest currently held by One Equity Partners (OEP), the global private equity investment arm of JPMorgan Chase.
“This is a strategic way for CBS to use its content brands and gain access to a highly distributed basic cable network that has a lot of upside,” said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. “Lionsgate, led by my friend Jon Feltheimer, is a forward-thinking content company and a great partner for us here. We’re excited to bring CBS’s programming and production assets to the venture, and work with Lionsgate to rebrand and grow a channel that will be increasingly valuable to our carriage partners.”