Rovi Acquiring TiVo for $1.1B, Will Take on the TiVo Name
As was widely expected, Rovi will pick up DVR company TiVo for $1.1 billion. Payment is mostly stock, with $277 million in cash. Rovi will pay $10.70 per share. The newly combined company will be called RiVo, with Tom Carson, Rovi's CEO, as its head.
The agreement combines Rovi's expertise in program guides, analytics, and cloud services with TiVo's set-top box and streaming video knowledge. TiVo's intellectual property made it valuable to Rovi, with the newly formed company in a strong position to expand its role in streaming entertainment. The two companies hold over 6,000 digital entertainment-related patents.
"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.
Prior to this announcement, Rovi had a market value of $1.4 billion, while Tivo had a market capitalization of roughly $922 million. The acquisition should be complete in the third quarter of 2016.
"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," added TiVo CFO and interim CEO Naveen Chopra.
In late March, The New York Times reported that Rovi was in talks to buy TiVo.
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