TiVo, whose flagship product ushered in the era of DVRs and commercial skipping, has agreed to a $3 billion merger with Xperi, an entertainment technology firm whose holdings include HD Radio and DTS audio.
The combined company will become one of the leading tech-licensing firms in the entertainment industry, with interests in everything from home video to filmmaking to consumer electronics.
TiVo and its shareholders will control 53.5% of the new company in an all-stock deal. With the merger, Tivo is abandoning (for now) previously announced plans to split itself into two separate companies (one focusing on products and the other on intellectual property). It did not rule out a separation at a later date.
“There is more content, and more ways to enjoy that content, than ever before,” said David Shull, CEO of TiVo in a statement. “In a rapidly expanding and fragmenting digital universe, consumers want and need to be able to easily find and enjoy the content that matters to them. TiVo has always been the company that brings entertainment together. Now, we can significantly expand our mission.”
The new company will boast over 10,000 patents and patent applications. Jon Kirchner, CEO of Xperi, will oversee the joint company once the deal is finalized, which is expected to occur in the second quarter of 2020. Shull will stay on as a strategic advisor.
The deal comes three years after Rovi acquired Tivo in a $1.1 billion deal.
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