UPDATE 3-Lions Gate sells 49 pct of TV Guide

* Lions Gate agrees to sell 49 pct TV Guide stake

* Stake sold to One Equity Partners, Allen Shapiro

* Lions Gate to get $123 mln for stake (Adds share action, comment)

By Sue Zeidler

LOS ANGELES, May 28 (Reuters) - Lions Gate Entertainment Corp (LGF.N) agreed to sell a 49 percent stake in the TV Guide channel for about $123 million, hoping to help turn the network into a dynamic entertainment channel.

The buyers are One Equity Partners, a private equity arm of JPMorgan Chaser & Co (JPM.N), and Allen Shapiro, former chief executive officer of Dick Clark Productions, the studio said on Thursday.

Shares in the independent film studio behind the "Saw" movie franchise and "Mad Men" TV series were up 6 cents or 1.1 percent to $5.47 in afternoon New York Stock Exchange trading after trading as high as $5.59 earlier.

Shapiro had struck a deal to buy the TV Guide channel and accompanying web sites from Macrovision Solutions Corp MVSN.O back in late 2008. But Macrovision killed that deal in January and instead sold the company to Lions Gate for $255 million.

Now, Lions Gate is bringing Shapiro and One Equity in to try to transform TV Guide into an entertainment network akin to NBC Universal's Bravo channel, News Corp's (NWSA.O) FX, or Cablevision System Corp's (CVC.N) AMC.

One Equity Partners retains the option of buying another 1 percent stake under some circumstances. The deal further solidified its ties with JPMorgan, the lead banker on its $340 mln credit facility.

Shapiro said on Thursday the TV Guide assets are unique and offer opportunities for sustained future growth.

While TV Guide Networks is distributed in more than 83 million homes, its lack of significant original programming has prevented it from being a strong contender as an entertainment destination -- particularly as on-screen electronic program guides are provided now by satellite and cable providers.

WANTED:CONTENT

Lions Gate plans to shift it away from the scrolling guide to more content. Since closing the acquisition of TV Guide in March, it has aggressively bid on programming like HBO's popular "Entourage" series, said a person familiar with the deal, noting it was ultimately edged out by higher bidders.

In October 2008, Macrovision sold the once wildly popular TV Guide magazine to equity fund OpenGate Capital for $1. Connections between the magazine and network were severed.

Now, Lions Gate also co-owns FEARnet, a video-on-demand Internet horror channel, with Sony Corp (6758.T) and Comcast (CMCSA.O). It is also involved in Epix, a network it is developing with Viacom Inc (VIAb.N) and Metro-Goldwyn-Mayer Inc, to begin operation in October.