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TiVo On the Auction Block

By - Source: The Motley Fool | B 11 comments

The Internet rumor mill suggests that TiVo could be sold soon.

A recent Bloomberg article speculates that a buyout is already in the works.

An analyst comment that TiVo could be worth about $2.4 billion and a recent patent battle victory over DISH that will allow TiVo to rake in more than $500 million are fueling rumors that the company is prepping itself for sale.

The main problem for TiVo at this time is that it is not profitable and there is no immediate opportunity to get in the black again. However, the company carries substantial patent value and could return to old glory with the help of a larger platform partner. Companies that could be interested in an acquisition may include Google, Microsoft or Rovi.

TiVo declined to comment on the rumors.

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  • 2 Hide
    lucky015 , July 6, 2011 6:46 PM
    After seeing the flop they made in my country (New Zealand) after partnering with one of the most hated companies in the country I don't find it difficult to see them failing as a whole.
  • 5 Hide
    Anonymous , July 6, 2011 6:49 PM
    TiVo sucks anyway, why pay for something you can get for free with a DVR from Philips?
  • 0 Hide
    Anonymous , July 6, 2011 9:15 PM
    I just bought to Tivo Premier XL about two months ago and absolutely love it! It is so easy to search for and play content from various sources - cable, Netflix, Amazon, Hulu, YouTube, etc. Hopefully the hardware will hold up long enough for me to take advantage of my lifetime subscription.

    Tivo has IP value, cash, carry-forward losses and they are definitely a good takeover candidate. There is a good chance multiple bids will come in once someone makes the first move. I do believe Tivo's poison pill is still in effect for another few months, though. Any offer would have to be done with the full consent of the Board. Either way, I certainly would not want to be short the stock and wake up one morning to a 50% or more loss!
  • 1 Hide
    TwoDigital , July 6, 2011 9:56 PM
    The TiVo Premier/HD line is still a great product... if they'd only consider adding a Blu-Ray drive they'd have a killer set. I switched from TiVo to Windows7 Media Center to avoid the $12/month TiVo fee.

    Now that WMC has 4-tuner cablecard support and a full OS (where I can add network video, network tuners, extra disk dirves, etc...) There's no looking back. For others though, the TiVo with a built in drive (even if it's just a DVD player) would probably be more than enough.
  • -1 Hide
    cronik93 , July 6, 2011 10:14 PM
    DVR
  • -1 Hide
    fir_ser , July 6, 2011 10:18 PM
    I believe Microsoft is the most potential acquirer.
  • 0 Hide
    jhansonxi , July 6, 2011 11:36 PM
    fir_serI believe Microsoft is the most potential acquirer.
    I seriously doubt it. Tivo is entirely Linux-based. WebTV+Tivo makes about as much sense as Windows Phone 7+Nokia. Tivo is imploding due to increasing competition from cheap PVR devices. It has lost a lot of subscribers.
  • 1 Hide
    dark_lord69 , July 7, 2011 5:24 PM
    You know why TiVo sucks?
    Cause no one wants to pay a monthly fee after you just spent a load on the hardware.
  • 0 Hide
    robochump , July 7, 2011 7:20 PM
    lucky015After seeing the flop they made in my country (New Zealand) after partnering with one of the most hated companies in the country I don't find it difficult to see them failing as a whole.


    Would that be a cable company? lol TiVo should have played nice with more TV service providers in order to have them sell their boxes. Would be interesting to see who cannibalizes TiVo which is sad since TiVo did have a great concept.
  • 0 Hide
    someoneelse , July 11, 2011 10:59 AM
    Google just bought sagetv 2 weeks ago.

    sagetv is DVR application that runs on java ( mac, MS & linux editions available b4 buyout )
    It was imao the best dvr software available - highly flexible with many user generated plugins.
    No one is telling why google bought sagetv but be prepared for some potentially interesting moves in the DVR market.
  • 0 Hide
    Anonymous , July 20, 2011 4:44 PM
    TiVo's user interface is the best I've ever used. I'm with DirecTV for most TV watching and have stayed with Standard Definition TiVos just to keep the user interface and yes, I pay a "DVR service fee" to DirecTV each month for my TiVo's to be able to download their programming guides and for the privilege of keeping my TiVos. I've used DirecTV's DVRs and the user interface is NOT as good as TiVo's... It's true what TiVo says, "It'll change the way you watch television."

    Here's hoping the very best of TiVo's future, whether a "reincarnation" is involved or not.

    Sorta' reminds me of the Apple Macintoshes vs. Microsoft Windows PCs "wars" - a great idea that most folks have not experienced due to "fate" (or actions by "little guys" and "big guys").

    Again, good luck, TiVo!
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