SAN CARLOS and SAN JOSE, CA – Rovi is buying TiVo in a cash and stock deal worth US$1.1 billion, and will assume the “iconic” TiVo brand as the new company name, the companies announced Friday morning.
The new company combines two media and entertainment technology innovators with complementary products, services, and intellectual property assets, including a combined IP portfolios of over 6,000 issued patents and pending applications, reads the news release. The combined benefits of the deal will also include enhanced global reach, serving nearly 500 service providers across the U.S. and globally, adding more than 10 million TiVo-served households to Rovi’s current base of approximately 18 million households using Rovi guides worldwide.
The company will continue to be led by Rovi CEO Tom Carson.
“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 Carson, in the release. “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,” added TiVo interim CEO and CFO Naveen Chopra. “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.”
The boards of both companies have approved the transaction, though it remains subject to customary closing conditions, including approval by TiVo’s and Rovi’s shareholders and clearance under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close in Q3 of 2016.
