Rovi to buy DVR maker TiVo for $1.1 billion

Rovi to buy DVR maker TiVo for $1.1 billion

- in Tech Update

A Tivo Bolt is displayed during the 2016 CES trade show in Las Vegas, Nevada January 7, 2016. The $299.00 unified entertainment system combines a cable box, a DVR and a streaming box into one device. REUTERS/Steve Marcus

Rovi Corp, a provider of digital entertainment guides, said on Friday it would buy digital-video recorder pioneer TiVo Inc in a deal valued at about $1.1 billion.

The $10.70 per-share cash-and-stock offer represents a premium of 13.6 percent to TiVo’s Thursday closing.

TiVo’s shares, which have shot up about 23 percent since the New York Times first reported about a potential deal on March 24, were trading at $9.74 before the opening bell on Friday.

Rovi said it would pay TiVo shareholders $2.75 per share in cash and the remaining in stock of a new holding company that will own both Rovi and TiVo.

The combined company, which will be known as TiVo, will be led by Rovi Chief Executive Tom Carson.

The deal will add TiVo’s more than 10 million customers to Rovi’s 18 million.

Bloomberg reported on Thursday the companies were close to a deal and an announcement could be expected as soon as Friday.