Ownership Nasdaq: GMSTLocation Pasadena, CAFounded 2000CEO Henry YuenEmployees 3,000Sector MediaWeb site www.uvsg.com
THE HERRING TAKEGemstar's e-book play needs to switch to an open platform to compete with Microsoft (Nasdaq: MSFT) and Adobe Systems (Nasdaq: ADBE), but it's a small part of the company. The proprietary interactive program-guide business is strong and yields huge advertising profits.
MARKET Provides print and interactive television program guides to 10 million homes. One of the few interactive TV applications to have vibrant commercial appeal. Also invented VCR Plus technology, which lets users record TV programs by using programming code numbers printed in television listings.
STRATEGY Company's leg-chewing patent lawyers have turned commodity TV listing data into a financial fortress. Has long-term deals with three of the five biggest U.S. cable companies and with DirecTV, the biggest satellite broadcaster. Now competing with Microsoft in the e-books business. Core challenge: to defend ground against competitors like TiVo (Nasdaq: TIVO) and Scientific-Atlanta (NYSE: SFA), which use less-popular guides that claim to circumvent Gemstar patents.
MANAGEMENT CEO is a disruptive force and a potential liability; was once referred to as a "patent terrorist." Nonetheless, managed to pull off a $7.9 billion merger with would-be competitor TV Guide and acquired e-book upstarts NuvoMedia and SoftBook Press.
FINANCIALS As of March 1, the stock was trading at $45.42, giving the company a market capitalization of $18.6 billion. Forward P/E ratio was 54.1. Trailing 12-month revenue was $519 million.
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