Variety and other outlets are reporting that Rovi will acquire TiVo for $1.1 billion. We first reported on this possibility a little over month ago, and now it appears to be official. Rovi CEO Tom Carson will lead the company, which will operate under the TiVo name.
Rovi is acquiring DVR pioneer TiVo for about $1.1 billion in cash and stock, bringing together two entertainment-tech companies with sizable patent portfolios.
The company will continue to be led by Rovi CEO Tom Carson, but following the closing of the deal it will adopt TiVo as the new company name.
The acquisition will merge TiVo--which has shifted its business to selling software and hardware to pay-TV operators, away from retail sales of DVRs--with Rovi, a supplier of interactive program guides, entertainment metadata and related products to cable and satellite operators, consumer-electronics makers, media and entertainment firms, and Internet companies.
TiVo has acquired broad name recognition, launching one of the world's first digital video recorders in 1999. But it has struggled to grow beyond a relatively small base of TiVo fans, as cable and satellite companies rolled their own DVRs to customers. TiVo also hasn't fully harnessed the shift to over-the-top video streaming, outflanked by cheaper devices from Roku, Apple and Google.
"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," Carson said in a statement. "By working together, Rovi and TiVo will revolutionize how consumers experience media and entertainment and at the same time build value for our stockholders."
"This transaction is the culmination of those efforts and the logical next step for TiVo," said Naveen Chopra, interim CEO and CFO of 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."
The companies plan to integrate TiVo and Rovi solutions, including pooling their data analytics operations, to deliver enhanced products catering to service providers, advertisers and media companies. The combo also will strengthen the new entity's "collective position as a leading provider of intellectual property in media and entertainment discovery," the companies said in announcing the pact.
To read the complete Variety story, click here.