Deals
TiVo $2.4 Billion Takeover Seen After Fight With Dish: Real M&A
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TiVo Inc., the unprofitable pioneer of digital-video recorders, is ripe for a takeover that may hand shareholders a 94 percent return after settling a seven-year patent battle with Dish Network Corp.
The $500 million settlement with Dish in May is enabling TiVo to profit from “time warp” technology that simultaneously records and plays back television shows. Even after losing money in 10 of the past 11 years and trading more expensively relative to revenue than 99 percent of consumer companies in the Russell 2000 Index, according to data compiled by Bloomberg, a sale of TiVo may fetch about $20 a share, or $2.41 billion, almost double its market value yesterday, Maxim Group LLC said.