M&E Daily

Rovi Changes to TiVo Following Acquisition

Following a final TiVo shareholder vote, Rovi’s $1.1 billion cash-and-stock acquisition of the company is complete, and Rovi Sept. 8 announced it was following through on its promise to adopt the TiVo brand.

That brings an end to Rovi, a name the company — then Macrovision — adopted in 2009, when it began to shift away from being purely a content protection business.

“Today’s consumers face a fragmented media landscape when it comes to devices and platforms, and content owners and service providers want to understand their audiences better and help their customers navigate an ever-increasing set of content choices,” said Tom Carson, president and CEO of the new TiVo. “The new TiVo is uniquely positioned to provide ground-breaking offerings that address the rapidly changing media landscape.

“Our broader product portfolio, more innovative patented technologies, increased resources and a stronger financial profile position us strongly for success and to continue providing the ultimate entertainment experiences to consumers across the globe.”

The new TiVo — using TiVo’s DVR tech for set-tops and mobile devices, and Rovi’s long-running expertise in discovery guides, content personalization, advertising, cloud services and analytics — will be able to reach approximately 25 million homes, covering more than 500 pay TV operators. TiVo expects the merger to result in $100 million in annual cost synergies, 65% of which will be recognized in the first year. Former TiVo board members Daniel Moloney and Jeffrey Hinson are now on the new TiVo board of directors as well.

Eric Wold, analyst with B. Riley and Co., wrote in a note to investors that the acquisition makes the new TiVo company a solid investment, thanks to both the cost synergies and the ability for the company to bring a host of services to the media and entertainment sector.

“… Not only do we believe the timing of a Rovi-TiVo combination makes sense with both companies hitting licensing revenue tailwind inflection points, but the transaction should also drive meaningful revenue and cost synergies vs. each company’s separate efforts,” Wold wrote. “ … We believe the more attractive opportunity lies in being able to approach customers with a single offering and integration effort that draws from the best IP of both companies. We view this as an opportunity to both drive further penetration internationally and with domestic tier one service providers and boost the pricing power of Rovi-TiVo.”