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  • Fri, Apr. 29, 9:38 AM
    • TiVo (NASDAQ:TIVO) is up 6.2% out of the open after news of Rovi's (NASDAQ:ROVI) $1.1B deal to buy the company this morning -- a move short of the 14% premium to yesterday's close that Rovi is paying.
    • TiVo's at $10.01 vs. the $10.70/share offer; Rovi is up 11%. The deal, combining two similar companies in the world of DVRs and electronic program guides, is expected to be accretive to adjusted profit within 12 months.
    • Rovi pays $2.75/share in cash and another $7.95 a share in stock in a new holding company for the combination.
    • That leaves current Rovi shareholders owning 66.8%-72.9% of the company; it's expected to be a tax-free exchange for TiVo shareholders.
    • The combination will keep the TiVo name but be led by Rovi chief Tom Carson, and sport revenue of more than $800M. Interim TiVo CEO Naveen Chopra says it's "the logical next step."
    • Now read TiVo: A Step In The Right Direction, But... »
    | Fri, Apr. 29, 9:38 AM | 2 Comments
  • Thu, Apr. 28, 7:04 PM
    • Shares in TiVo (TIVO +2.1%) are up 6.2% after hours, riding a spike that came when Rovi (ROVI -3.2%) elected to unexpectedly postpone its quarterly results call to tomorrow morning at 8 a.m. ET.
    • That's made hopefuls of TiVo shareholders expecting a Rovi buyout, Jeff Baumgartner notes. The two were linked last month in "advanced negotiations" for a TiVo sale to Rovi, and Bloomberg reported this month that discussion was centered on the long-term value of patent portfolios.
    • Rovi shares were flat in after-hours action.
    • Rovi call link
    • Updated: Bloomberg reports sources saying a deal is near, perhaps tomorrow, at a premium of about 10%. That implies a value of about $1B for TiVo, vs. Rovi's market value of $1.4B.
    • Now read TiVo: A Step In The Right Direction, But... »
    | Thu, Apr. 28, 7:04 PM | 4 Comments
  • Thu, Mar. 24, 9:41 AM
    • The NYT reports DVR hardware/software provider TiVo (TIVO +17.4%) is in "advanced negotiations" to sell to program guide/content protection IP provider Rovi (ROVI -2%). TiVo has blasted off on the report, while Rovi is down moderately.
    • TiVo shareholders would reportedly receive cash and stock, and "probably" own ~30% of the combined company.  Rovi activist Engaged Capital (won two board seats last year) is said to have pushed for a merger with TiVo.
    • In addition to its DVR-related offerings, TiVo provides cloud-based content discovery services and set-top/portal server software for emerging markets, thanks to its acquisitions of Digitalsmiths and Cubiware. Both TiVo and Rovi derive a large % of their sales from pay-TV providers.
    | Thu, Mar. 24, 9:41 AM | 3 Comments
  • 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
    | May 26, 2015, 5:00 PM
  • 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).
    | Jan. 29, 2014, 1:17 PM
  • 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
    TiVo (TIVO) will announce later today that it purchased advertising research company TRA. With the buy, TiVo aims to beef up its ability to measure the effectiveness of TV ads.
    | 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