The deal would merge TiVo and Rovi, which is one of the largest owners of patents for digital entertainment devices.
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A TiVo spokesperson declined to comments when requested while Rovi was not reached. Neither company has commented on the report.
Tivo recorded breakeven earnings per share (EPS) in the latest reported quarter, as opposed to the Street’s forecasted loss of $0.6, while its revenue clocked in at $123.1 million, which beat the analysts’ estimate of $102.73 million.
The stock increased 23.37% or $1.79 on March 24, hitting $9.45. Content discovery solutions include interactive program guides (NASDAQ:ROVI), search and recommendations, cloud data services and its database of metadata, which includes descriptive information, promotional images or other content that describe or relate to Television shows, videos, movies, music, books, games or other entertainment content. However, they added, “we would not be surprised if other suitors emerged”. Rovi, however, is most certainly a lesser-known name.
The two companies are considered competitors, meaning a deal could make the combined company more profitable.
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Both TiVo and Rovi “have a history of filing lawsuits fueled by their respective pools of patents and intellectual property”, reports Jeff Baumgartner for Multichannel News. “TiVo has since settled lawsuits against Motorola Mobility (formerly part of Google) and Cisco Systems, as well as Time Warner Cable, Dish Network, AT&T and Verizon Communications”. TiVo named CFO Naveen Chopra interim chief executive officer effective January 30. Barclays upped their price objective on TiVo from $8.00 to $13.00 and gave the company an “equal weight” rating in a research note on Friday, December 11th. Federal regulators aim to open up the set-top box TV market. Reportedly the deal could be a blend of cash and stock option.
