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.
- Rovi Talking TiVo Takeover – Report
- Is 2016 the Year TiVo Gets Acquired?
- TiVo's Future Looks Nothing Like Its Past
- TiVo CEO Rogers Bows Out at Critical Time
— Mari Silbey, Senior Editor, Cable/Video, Light Reading