Rovi Reportedly Looking To Buy TiVo

by Wayne Friedman , March 24, 2016

TiVo stock soared over 23% on Thursday after a report that it is in talks to be acquired by Rovi, the TV programming guide product company.

First reported by The New York Times on Thursday, the proposed deal would be in cash and stock: TiVo has a current market value of $750 million; Rovi’s market value is $1.7 billion.

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.

m&a, tv

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