Rovi is buying digital video pioneer Tivo in a deal representing a 13.6 percent premium to Tivo's Thursday closing price. Bobbi Rebell reports.
Rovi is buying digital-video recorder pioneer Tivo in a deal valued at $1.1 billion. The $10.70 per share cash and stock offer works out to an almost 14 percent premium to Tivo's Thursday closing price. Rovi provides digital entertainment guides. Robert Stone at Cowen and Company writing in a note quote: "The combination looks even better than we assumed... We believe the combination should significantly strengthen and expand relationships across a largely shared and complementary customer base and market segments," The deal will add TiVo's more than ten million customers to Rovi's 18 million. The combined company will be known as Tivo, and will be led by Rovi CEO Tom Carson.