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Earnings: Macrovision Q3 Revs up 32 Percent; Acquiring All Media Guide Holdings for $82 Million

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Digital distribution firm Macrovision (NSDQ: MVSN) has announced Q3 revenue of $76.8 million, up 32 percent from last year’s $58.1 million. Net income in the quarter grew 95 percent to $14.1 million ($.26 per share) from last year’s $7.2 million ($.14 per share). Results were inflated by the closing of certain key deals, which had failed to close in the last quarter, leading to a revenue shortfall. In the coming quarter, the company expects to see revenue of $80-$85 million.

Along with the earnings release, Macrovision said that it’s acquiring All Media Guide Holdings, a provider of information databases and metadata for the entertainment industry, for $82 million. Ann Arbor-based AMG collects and distributes information on a range of media, and has customers that include online and physical retailers and consumer electronics manufacturers. The deal, which is expected to close by the end of the year, will likely add $20 million to revenue and $.05 in EPS for the year 2008.
Earnings Release | Acquisition Release | Webcast

Rafat adds: In the music and media metadata firm, some of the competitors include Muze, which is owned by VC/PE firm Enterprise Partners Venture Capital. AMG itself was owned in part by the PE firm Yucaipa and distribution firm Alliance Entertainment Corp prior to this. Among the competitors, Muze has also bulked up, buying out Loudeye

One Response to “Earnings: Macrovision Q3 Revs up 32 Percent; Acquiring All Media Guide Holdings for $82 Million”

  1. John Q. Public

    Although Muze should be concerned, Gracenote is the company that stands to lose the most by this deal. The CDDB company's core revenue earning sector is the consumer electronics market. The combination of meta-content-rich AMG plus CE-techno-savvy Macrovision is a compelling combination for CE companies. Gracenote has recently lost a number of key clients (RealPlayer, Rhapsody, PS3, Verizon V CAST, Sony home media server, etc ) to AMG's johnny-come-lately LASSO media recognition service even without Macrovision. The new combination will certainly drive more business to the Macrovision/AMG solution in the CE market, cutting off Gracenote's air supply. Someone should start a death pool.