Online entertainment listings company Rovi plans to acquire digital video recording firm TiVo for US$1.1 billion in a stock and cash deal, the companies said Friday.
TiVo has cloud-based technology for integrating live, recorded, on-demand and Internet television into one user interface, with search, discovery, viewing and recording options from a variety of devices. Its technology has been deployed by operators such as Virgin Media and Vodafone Spain.
Rovi announced in March that Sharp’s new Aquos TVs would include its G-Guide electronic programming guide.
The combined company is forecast to have more than $800 million in revenue in the current year. More than 10 million TiVo-served households are expected to be added to the current base of about 18 million homes that use Rovi guides. The new entity will serve nearly 500 service providers worldwide, the companies said.
The deal between Rovi and TiVo, besides creating a large media and entertainment technology company with complementary products and services, will also lead to the setting up of a company with a worldwide portfolio of over 6,000 issued patents and pending applications worldwide.
The two companies have a strong licensing business and have also sued key players like Comcast for patent infringement in the past. The companies said they have more than $3 billion in combined IP licensing revenue and past damage awards.
The transaction is expected to close in the third quarter and the combined company will use the TiVo name. Tom Carson, CEO of Rovi will be the chief executive of the new company.