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Rovi Reels in TiVo for $1.1B

What a ride for TiVo. The famous DVR company founded in 1997 is being snapped up today by TV software company Rovi in a deal worth approximately $1.1 billion. Rovi says it will take TiVo's name so the iconic brand will live on.

Together Rovi Corp. and TiVo Inc. (Nasdaq: TIVO) have "IP portfolios of over 6,000 issued patents and pending applications." The companies also claim that they'll gain $100 million in annual cost synergies as a result of the acquisition.

The two CEOs released the following statements:

    Rovi's acquisition of TiVo, with its innovative products, talented team, and substantial intellectual property portfolio, strengthens Rovi's position as a global leader in media discovery, metadata, analytics, and IP licensing," said Tom Carson, CEO of Rovi. "It's an exciting time as the media and entertainment landscape undergoes a significant evolution. The combined capabilities of TiVo and Rovi place us in a tremendous position to extend services across platforms and to a customer base that includes traditional, over-the-top and emerging players across the globe. By working together, Rovi and TiVo will revolutionize how consumers experience media and entertainment and at the same time build value for our stockholders.

    We're proud of TiVo's strong innovation history and of the ongoing efforts of our team to provide best-in-class products for our loyal consumer and service provider customers," said Naveen Chopra, Interim CEO and CFO of TiVo. "This transaction is the culmination of those efforts and the logical next step for TiVo. In joining forces with Rovi, our customers, employees and stockholders will benefit from being part of a more diversified industry leader with significantly greater market opportunities. Our combination creates a more influential global player with a commitment to product innovation, which will be incredibly well positioned to redefine television.

Rovi will host its delayed earnings call this morning. (See TiVo Shares Rise as Rovi Delays Earnings.)

More to come as the story unfolds.

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— Mari Silbey, Senior Editor, Cable/Video, Light Reading

alanbreznick 5/3/2016 | 11:38:47 AM
Re: Ride for Rovi Maybe they should just go back to TV Guide. That seems to work pretty well for a long time. Or am I just dating myself?
msilbey 5/3/2016 | 10:29:30 AM
Re: Ride for Rovi No joke. I-Guide, J-Guide, anyone? I'm afraid there's still a lot of vitriol out there for the companies that Rovi once was. Monopolistic and litigation-heavy history.
Joe Stanganelli 5/3/2016 | 8:47:25 AM
Re: Disappointed I suspect that enough companies are working on their own competing and substantially differentiated video solutions that TiVo simply isn't that valuable a part of the equation for many of them.
Joe Stanganelli 5/3/2016 | 8:46:26 AM
Depressing? The depressing aspect of all this is that Instagram (Instagram!) sold for about the same amount of money a few years back.
danielcawrey 5/1/2016 | 2:32:21 PM
Re: Disappointed Seems like a sensible deal. I don't think TiVo would have survived on its own much longer – this is probably something that's been in the works for a while now. The fact that the companies will save $100 million as one entity is a great example of why this needed to get done. 
jbtombes 4/29/2016 | 6:48:15 PM
Ride for Rovi And what a ride it's been for Rovi, which has undergone more shape shifts than a T-1000. (Movie digression: The Terminator came out the same year at the Cotton Club, the first movie that used Macrovision's copy protection technology - 1984.) Rovi was nestled within Macrovision back then. After that came the IPO, the $1b market cap, acquisitions - esp. Gemstar TVGuide, divestments, mixed and repeated over several cycles. Someone should write a book.
bosco_pcs 4/29/2016 | 2:11:35 PM
Disappointed Thought TiVo would fetch a better premium. It could be a strategic product with a patent kick for the right suitor
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