TiVo Surges on Report Company Is in Sale Talks With Rovi

Updated on
  • TiVo shareholders would receive cash, stock, NYTimes reports
  • Company spokespeople declined to comment on possible deal

Shares of TiVo Inc., a pioneer of digital-video recorders, surged the most since April 2011 on a report the company is in advanced negotiations to be sold to Rovi Corp.

Shareholders of TiVo would receive a combination of cash and stock, though the exact price was still being negotiated, the New York Times reported, citing people briefed on the talks. After the deal, shareholders of TiVo, which had a market value of $750 million as of Wednesday, would probably own about 30 percent of the combined company, according to the report.

A deal would merge TiVo and Rovi, which holds patents for TV programming guides and products that are licensed to cable companies and others such as Sony Corp. and Google.

Whit Clay, a TiVo spokesman, and Stacey Hurwitz, a Rovi spokeswoman, declined to comment.

Shares of TiVo soared as much as 23 percent to $9.41, their biggest intraday jump since April 20, 2011. They were trading at $9.24 at 11:01 a.m. in New York. Rovi was little changed at $20.09 after dropping as much as 3.6 percent.

Rovi, formed through the 2008 merger of Macrovision and Gemstar, provides on-screen guides for TV program listings and audience measurement services for advertisers, and is one of the largest owners of patents for digital entertainment devices. In July, the company lost a lawsuit against Netflix Inc. over patents related to features and functionality provided for over-the-top video service, which has been utilized by companies including Apple Inc., Google and Hulu LLC.

TiVo, founded in 1997, once was the default verb to describe the act of digitally recording TV. The company has been striking more deals to supply set-top boxes or license its technology to cable and satellite-TV operators as it tries to tap into more U.S. TV households.