Gemstar International Group

Henry Yuen's legal battles now extend to his personal life. His ex-wife, Molly Yuen, claims that Henry obtained a "secret" divorce from her in 1987. Molly Yuen is suing Henry for fraud, claiming she learned of the 1987 divorce only in 1997 when she became suspicious that he was involved with another woman. She now wants a full accounting of Gemstar's value and believes she is entitled to a share of her ex-husband's wealth.

Most high-tech companies like to boast that they are on the cutting edge. Not Gemstar. "This is not cryogenics or going to space," says Chief Executive Henry Yuen. "We are using known technology. With Gemstar's VCR Plus, users with specially outfitted VCRs can set their machines to record by punching the codes listed next to the programs in TV listing guides. A chip in the VCR then de-scrambles the code--usually three to eight digits--using an algorithm.

Scientific-Atlanta Inc., the No. 2 U.S. cable television set-top box maker, said Friday it filed a lawsuit against Pasadena-based Gemstar International Group alleging that the company is trying to monopolize and restrain development of TV program guides. Norcross, Ga.-based Scientific-Atlanta claims that Gemstar's patents for its program guides are invalid and that it's trying to exert monopoly power to restrain others from developing competing guides. Scientific-Atlanta asked the U.S.

Take the company that produces TV Guide and the on-screen television listing service Prevue, combine it with the firm that created VCR Plus, and here's what you'd get: a single source for navigating through hundreds of television channels in print, over the airwaves, via satellite or online. That's the vision of United Video Satellite Group President Peter C. Boylan III, whose company this week revealed an unsolicited bid for Gemstar International Group of Pasadena. The proposed $2.

After insisting for 10 days that it is not for sale, Gemstar International Group's board of directors on Thursday formally rejected an unfriendly $2.8-billion takeover offer from onetime partner United Video Satellite Group. Henry Yuen, chief executive of Pasadena-based Gemstar, said the $45-per-share offer undervalues his interactive television services company, whose stock has traded in the $35 to $43 range for the last three months.

Shares of Gemstar International Group rose nearly 5% on Monday as the Pasadena company hired advisors to evaluate an unfriendly takeover bid. But the company continued to insist it isn't for sale. Moreover, Gemstar adopted a "shareholder rights" plan to ward off the $2.8-billion offer from United Video Satellite Group. Gemstar also expanded a licensing pact with Microsoft Corp., a rival to cable giant Tele-Communications Inc., which controls United. Tulsa, Okla.

United Video Satellite Group Inc. dropped its $2-billion cash bid for Gemstar International Group Ltd., and said it will develop its own interactive program guide for digital cable television. Pasadena-based Gemstar last week rejected the $45-a-share offer as too low and said it wanted to remain an independent developer of TV programming services. Tulsa, Okla.-based United Video, which is controlled by affiliates of Tele-Communications Inc.

When Gemstar International Group adopted a "poison pill" defense this week in its takeover battle against United Video Satellite Group, it seemed to rip a page from the merger playbook of the 1980s. Poison pills were a central--if fiercely controversial--element of the decade's many takeover dramas. But as Gemstar illustrates, poison pills have not only reemerged in the 1990s, they may be more popular than ever despite the generally amicable tone that most deals take these days.

Pasadena-based Gemstar International Group shares fell $5.81, or 16%, to close at $30.44 on Nasdaq, after it said its joint venture agreement with United Video Satellite Group Inc. lapsed because United Video couldn't satisfy some conditions of the agreement. Gemstar, which provides interactive program guide services that enable users to view a TV guide on screen, is continuing to hold talks with United Video about its plan to offer interactive program guides for cable-TV systems.