Entertainment technology company Rovi has purchased original DVR
service TiVo for $1.1 billion, or $10.70 per share. Talks of such
an acquisition heated up last month, and now it’s official —
pending customary regulatory approval, of course.
That $10.70 per-share price represents a premium of approximately
40 percent over TiVo’s closing stock price of $7.66 on March 23 —
the last trading day prior to media speculation about a possible
transaction. It breaks down into $2.75 in cash and $7.95 in the
new company’s common stock. Rovi stockholders will have an easy
1-for-1 swap for their own new stock.
The merged firms will be led by Rovi CEO Tom Carson, though it
will adopt the TiVo brand as the new company name.
We’ve had a TiVo for the last 16 years. I really hope this isn’t the end of the line for TiVo as we know it. Crazy cool feature they added recently: they index the commercial breaks in many popular shows, and for those shows, you can precisely skip the entire commercial break with one button. Press the button, fun noise plays, and boom, your show is back on.