TiVo On the Auction Block

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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  • 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.
  • TiVo sucks anyway, why pay for something you can get for free with a DVR from Philips?
  • 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!