Entertainment metadata provider Rovi said that it will acquire TiVo for $1.1 billion and take its name.
(CCM) — On Friday, Rovi announced that it is buying the iconic DVR maker for $10.70 per share in cash and stock, totaling roughly $1.1 billion. The deal will be paid mostly in stock, with around $277 million to be paid in cash at $2.75 per share. The new company, which will keep the TiVo moniker, will be run by Rovi's CEO Tom Carson. In a statement on the acquisition, Carson said, "Rovi's acquisition of TiVo, with its innovative products, talented team, and substantial intellectual property portfolio, strengthens Rovi's position as a global leader in media discovery, metadata, analytics, and IP licensing." Together, the companies have over 6,000 patents issued and pending. Carson added, "It's an exciting time as the media and entertainment landscape undergoes a significant evolution… working together, Rovi and TiVo will revolutionize how consumers experience media and entertainment and, at the same time, build value for our stockholders."
TiVo did not make its own announcement of this deal, but interim CEO and CFO Naveen Chopra said that it was "the logical next step" for the company. "In joining forces with Rovi, our customers, employees, and stockholders will benefit from being part of a more diversified industry leader with significantly greater market opportunities," he explained. Rovi and TiVo's boards have approved the deal, but it has yet to be approved by regulators. Rovi said that it expects the deal to close in the second half of 2016.
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