TiVo agrees to $1.1 billion acquisition by Rovi
See the original posting on The Verge
Digital entertainment company and patent hog Rovi has agreed to buy DVR-maker TiVo in a $1.1 billion deal. The acquisition was rumored yesterday and confirmed this morning by Rovi, which says it will adopt the “iconic TiVo brand” as the name for the new company. The deal will mostly be paid for in stock, with $277 million in cash making up the final price. Following the usual regulatory approvals, the acquisition is scheduled to go through in the third quarter this year.
As DealBook reported yesterday, it seems that the acquisition is mostly about patents. Neither TiVo nor Rovi make most of their money from actual products, instead, they rely on their intellectual property. For example, TiVo’s Time Warp patent, which allows users to…