TiVo Shares Rise as Rovi Delays Earnings
In a surprise move, Rovi delayed its earnings report today just hours before it was due to host a conference call to discuss results. The news sent TiVo shares rising as much as 10% in after-hours trading with investors placing their bets that a buyout of the DVR company could be imminent.
Reports surfaced last month that Rovi Corp. was seeking to acquire TiVo Inc. (Nasdaq: TIVO), although the companies haven't commented publicly on the matter. (See Rovi Talking TiVo Takeover – Report .)
Bloomberg further reported two weeks ago that the companies have been trying to reach agreement on the valuation of their patent portfolios.
Back in February, Light Reading reported that multiple sources were predicting TiVo would be acquired in 2016. Three independent sources also confirmed at the time that Rovi might engage in M&A activity in the near future. (See Is 2016 the Year TiVo Gets Acquired?)
TiVo currently has a market capitalization of just under $922 million, while Rovi has a market cap of $1.45 billion.
Rovi has rescheduled its earnings call for Friday morning at 8:00 a.m.
— Mari Silbey, Senior Editor, Cable/Video, Light Reading