Gemstar Agrees to Buy Assets of Diva Systems

Gemstar-TV Guide International Inc. agreed to buy the assets of video-on-demand software maker Diva Systems Corp. under a Chapter 11 reorganization plan filed by Diva in U.S. Bankruptcy Court in San Francisco.

Creditors of closely held Diva will receive an undisclosed amount of Gemstar shares, the firms said. Gemstar plans to use Redwood City, Calif.-based Diva’s software to develop electronic-commerce and streaming-video features within its on-screen program guide.

Shares of Pasadena-based Gemstar fell 24 cents to $9.70 on Nasdaq.