What: Rovi Corporation will acquire TiVo Inc. for approximately US$1.1 billion.
Why it matters: The new company combines two of the industry’s most influential players and intends to transform the media and entertainment technology sector by placing services across platforms and to a customer base that includes traditional, over-the-top and emerging players across the globe. Rovi’s current CEO, Tom Carson,will lead the combined company, to be called TiVo, which will have an estimated revenue of US $800 million.
Rovi Corporation will acquire TiVo Inc. for US$10.70 per share in cash and stock for a total consideration of approximately US$1.1 billion. The new company combines two media and entertainment technology innovators with complementary products, services, and intellectual property assets and a common mission to write the next chapter of the consumer entertainment experience. The company will continue to be led by Tom Carson and upon closing of the transaction will adopt the TiVo brand as the new company name.
The Board of Directors of the combined company will include participation from TiVo’s current Board.
“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 and TiVo serve many of the largest pay-TV operators both in the U.S. and around the world. Combined benefits include enhanced global reach, serving nearly 500 service providers across countries, adding more than 10 million TiVo-served households to Rovi’s current base of approximately 18 million households using Rovi guides worldwide.Solutions will be integrated to deliver enhanced customer value and to strengthen relationships with top partners.
