• Zacks Investment Research, Wednesday, June 16, 2010 11:29 PM

TiVO shares leaped 5.11% and closed at $8.02, following rumors of a buyout by DirecTV, according to the Street Insider. Neither company supplied concrete information and the acquisition would face antitrust hurdles. The shares are currently trading near the low of its 52 week range of $7.10 to $18.93. Shares are expected to trade higher on the back of the buyout speculation.

DirecTV is an important competitor for TiVO. In the satellite business, DIRECTV has introduced DVR technology including both standard definition and high definition broadcasts that competes against TiVO's offerings.

Separately, TiVO, a leading video recording technology company, has been involved in a long-running patent infringement dispute over DVRs against EchoStar. TiVO recently suffered a severe setback, when the U.S. Patent and Trademark Office ruled that the company's two patent claims over time warp software are invalid.

TiVo CEO Tom Rogers focused on the industry positives at the Banff Television Festival, notes The Hollywood Reporter. What's in it for ad agencies, networks and cable operators that work with TiVO? "For cable, it's being able to have a stunning user experience that makes clear that finding what you want to watch and searching for anything out there can be as much fun as watching TV itself," Rogers insists. For advertisers, TiVO offers new ways to market and sell products. "Commercials aren't dead. You just have to find another way to present it (advertising) and express it. And we have a way to do that," he said.  

advertisement

advertisement