TiVo's stock closed up 23% to $9.45; Rovi stock was down 1.3% to $19.81 at the close of the day.
A research note from investment bankers Jefferies Group says TiVo may be worth $11 to $15.50 a share -- somewhere between five to eight times of its cash flow (earnings before interest taxes depreciation and amortization.).
Rovi provides on-screen guides for many pay TV network providers -- as well as selling advertising products; TiVo has many deals for its digital video recording technology with pay TV providers.
Rovi’s stock has been climbing since October 2015 when it was trading below $10 a share. TiVo’s stock has been steadily sinking since late April of a year ago when it was trading at a high of $11.31.
Last year, longtime TiVo chief executive officer Tom Rogers departed the company in late January after eleven years on the job.