Swaraj Chowdhury, CFA
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... »
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, 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.
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