May 26, 2015, 5:00 PM
- Along with its FQ1 results, TIVO has announced it's acquiring Cubiware, a Polish developer of low-cost set-top and portal server software for emerging markets pay-TV providers. Terms are undisclosed; presumably, offshore cash is being used.
- TiVo states Cubiware's offerings will expand its presence in 25 countries, thereby helping it cross-sell its existing offerings overseas. Altogether, Cubiware claims ~40M Latin American and EMEA customers possessing 12M pay-TV subs between them. The deal follows last year's purchase of content discovery service provider Digitalsmiths.
- Helping shares rally: TiVo has guided for FQ2 service/tech revenue of $94M-$97M, above a $93.6M consensus. Net income guidance is at $7M-$10M.
- Subscriber data: FQ1 net subscriber adds totaled 285K, down from 332K a year ago and bringing the base to 5.76M. MSO subs rose by 285K to 4.81M; TiVo-owned subs were roughly flat at 944K. TiVo-owned ARPU fell to $7.43 from FQ4's $7.68 and the year-ago period's $7.81.
- Business performance: Service revenue +11% Y/Y to $39.8M; tech revenue (licensing) +5% to $52.6M; hardware revenue +6% to $22.3M. MSO service revenue rose 41% Y/Y, and Digitalsmiths revenue roughly doubled.
- Financials: GAAP operating expenses rose by $1M Y/Y to $52.5M. $27.9M was spent on buybacks. TiVo ended FQ1 with $686M in cash, and $354M in convertible debt.
- TiVo has risen to $10.90 AH. FQ1 results, PR
Jan. 29, 2014, 1:17 PM
- TiVo (TIVO +1.7%) is acquiring Digitalsmiths, provider of a cloud-based video content discovery service for pay-TV providers, for $135M in cash.
- Digitalsmiths relies on user viewing and search activity (among other things) to offer personalized content recommendations. The company claims to have 46 U.S. and international clients, including 7 of the top-10 U.S. pay-TV providers.
- TiVo states Digitalsmiths' current user base amounts to just 10% of "the total potential user base licensed under its current contracts," and expects the figure to rise to 50% within the next few years.
- The deal gives TiVo another product to sell to pay-TV providers, as well as $20M in net operating losses (NOLs) it can use to cut its tax bill.
- Separately, TiVo says it's adding $100M to its buyback plan. That raises TiVo's total authorization to $186M (good for repurchasing 12% of shares at current levels).
Dec. 10, 2012, 2:08 AM
Cable infrastructure vendor Arris (ARRS) and U.K. set-top box maker Pace have "made the most compelling bids" for Motorola Mobility's (GOOG) set-top/cable infra unit, Bloomberg reports. A complex financing structure in which Google maintains equity and patents might prevent a deal from closing this year. P-E firms are said to be uninterested in the unit, which has to contend with an industry shift towards cloud-based apps, and potentially costly litigation with TiVo. Cisco's (CSCO) cable unit could benefit from any turmoil related to the sale. (previous)| Dec. 10, 2012, 2:08 AM
Sep. 24, 2012, 6:41 PM
Now that Verizon has joined AT&T and Dish Network in giving TiVo (TIVO) a hefty patent payoff, the odds of the company's remaining legal adversaries - set-top box giants Motorola Mobility and Cisco, along with Time Warner Cable - winning favorable rulings are pretty slim, argues Janney's Tony Wible. Wible considers the settlement odds for these cases to be lower due to their higher stakes (a combined $1B-$2B), but thinks TiVo's IP could make it an M&A target.| Sep. 24, 2012, 6:41 PM
Jul. 17, 2012, 6:43 AM
Feb. 6, 2012, 8:39 AM
TiVo (TIVO) +6% premarket on a Barron’s weekend report that says the provider of digital-video recorders could be targeted for acquisition by Microsoft (MSFT) or Google (GOOG). Software patent victories and advanced hardware also have made shares attractive again, the article says.| Feb. 6, 2012, 8:39 AM
Jul. 5, 2011, 8:43 AM
Though a buyout price of $2.4B ($20/share) has been cited for TiVo (TIVO), Adam Muller argues the real cost of acquiring the company could be much lower, with factors such as TiVo's $480M net cash position, $250M in deferred tax assets, and $33M/year in settlement payments from Dish Network (DISH) creating a built-in discount.| Jul. 5, 2011, 8:43 AM
May 26, 2011, 6:01 PM
Communications equipment maker Arris (ARRS) is in talks to buy SeaChange International (SEAC), a maker of digital video gear, WSJ reports. TiVo (TIVO) and NDS Group, a technology provider for pay-TV operators owned by News Corp. (NWS) and buyout firm Permira, also reportedly considered buying SEAC but have lost interest.| May 26, 2011, 6:01 PM | 1 Comment