Rovi Buys TiVo For $1B, Consolidates Personal TV Marketplace

Rovi, the digital entertainment guide provider, said it would buy TiVo, the digital video recording technology company, for $1.1 billion in cash and stock. The deal had been rumored for some weeks.

Mid-day trading of TiVo stock was up 5.7% to $9.96. Rovi’s stock is up 5.5% to $18.30 in mid-day trading. Rovi’s price for TiVo is around 40% premium over TiVo stock in late March, when news of the deal surfaced.

Rovi and TiVo will not only seek to combine TiVo’s traditional television and on-demand content with Rovi’s guides but look to strengthen new data-based metrics efforts. TiVo Research, a division of TiVo, has been active in audience measurement and other areas for years.

The combined company will have revenue of more than $800 million and adopt the TiVo name. Tom Carson, Rovi’s CEO, will become CEO of TiVo.



Next story loading loading..