The board unanimously approved a plan to separate into product and IP licensing businesses.
It will pursue a tax-free spin-out of the product business to shareholders; it consists of the Platform Solutions and Software and Services businesses. The product segment generated $401M in revenue for 2018, with a large component of recurring revenue.
The IP licensing business covers an expansive portfolio of some 5,500 Rovi and TiVo patents and pending applications. Revenue was $295M for 2018, with a high percentage of recurring revenue.
The separation still calls for final board approval, tax opinions and an effective SEC registration. Details on the relationship between the two and corporate brand identities will come later.
TiVo expects to complete the deal in the first half of 2020.
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