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TiVo Looks Like a Takeover Target

Microsoft or Google might want its TV technology

Now that TiVo has settled a seven-year patent dispute with Dish Network, the unprofitable pioneer of digital-video recorders is ripe for a takeover, according to analysts and money managers. Mark Harding, an analyst at investment firm Maxim Group, believes the company could fetch $2.4 billion, or $20 a share—nearly double its $11 closing price on July 5. The settlement “has opened the door for a deal,” he says.

The settlement, reached in May, calls for Dish to pay TiVo $500 million for using its “time warp” technology that simultaneously records and plays back television shows. Harding believes the resolution of that suit means TiVo may now get at least $300 million in settlements from AT&T and Verizon, which it has also sued for patent infringement. Spokesmen for TiVo, AT&T, and Verizon declined to comment.