Digital TV company Rovi is buying TiVo in $1.1 billion deal - Los Angeles Times
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Digital TV company Rovi is buying TiVo in $1.1 billion deal

Digital TV listing company Rovi is buying TiVo in a cash-and-stock deal valued at about $1.1 billion. Rovi Corp. said Friday, April 29, 2016 that it will pay $10.70 in cash and stock for each TiVo Inc. share. Rovi will pay $2.75 per share in cash, or about $277 million. The rest, $7.95 per share, will be paid in stock.

Digital TV listing company Rovi is buying TiVo in a cash-and-stock deal valued at about $1.1 billion. Rovi Corp. said Friday, April 29, 2016 that it will pay $10.70 in cash and stock for each TiVo Inc. share. Rovi will pay $2.75 per share in cash, or about $277 million. The rest, $7.95 per share, will be paid in stock.

(Mark Lennihan / AP)
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Digital TV listing company Rovi is buying TiVo in a cash-and-stock deal valued at about $1.1 billion.

Rovi Corp. said Friday it will pay $10.70 in cash and stock for each TiVo Inc. share. Rovi will pay $2.75 per share in cash, or about $277 million. The rest, $7.95 per share, will be paid in stock.

Once the deal closes, the combined business will use the TiVo name. TiVo is a digital video-recording company.

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Rovi CEO Tom Carson will serve as chief executive of the new company. He said in a written statement on Friday that the buyout will help to extend services across platforms and expand its customer base. The transaction will add more than 10 million TiVo-served households to Rovi’s current customer base of about 18 million households using its guides globally.

The companies anticipate at least $100 million in annual cost savings. The transaction is expected to add to Rovi’s adjusted earnings per share within the first year after closing.

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Both companies’ boards have approved the deal, which is targeted to close in the third quarter. It still needs approval from both companies’ shareholders.

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Shares of TiVo, based in San Jose, were up 56 cents, or 6%, to $9.98 in early trading. Shares of Rovi, based in Santa Clara, climbed 67 cents, or 3.9%, to $18.02.

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