The merged company will take on the Xperi name but will continue to sell TiVo-branded products.
TiVo Corporation has announced that the company is merging with entertainment tech firm Xperi to combine in an all-stock transaction, representing approximately $3 billion of combined enterprise value.
Following the completion of the transaction, Xperi’s Chief Executive Officer will serve as Chief Executive Officer of the new parent company and Xperi’s CFO, will serve as Chief Financial Officer. TiVo’s Chief Executive Officer will continue as a strategic advisor to ensure a successful integration.
The transaction creates a leading consumer and entertainment technology business and one of the industry’s largest intellectual property (IP) licensing platforms with a diverse portfolio of entertainment and semiconductor intellectual property.
In light of the business combination, TiVo has suspended its near-term plans to separate its product and IP businesses. Upon closing of the transaction, each company’s respective product and IP businesses will be integrated and operated as separate IP licensing and product business units. This will facilitate a potential separation of the combined businesses at a later date.
Commenting on the deal, Jon Kirchner, Chief Executive Officer of Xperi, said: “This landmark combination brings together two highly complementary companies poised to set the industry standard for user experiences across the digital value chain. Together, we will be able to integrate TiVo’s leading content aggregation, metadata, discovery, and recommendation capabilities with our home, automotive, and mobile technology solutions to help our customers create experiences that excite and delight consumers. Additionally, the combined company will continue to unlock the value of our strategic and sizable patent portfolios by bringing together our deep industry expertise and powerful innovation engines.”
David Shull, Chief Executive Officer of TiVo, added: “There is more content, and more ways to enjoy that content, than ever before. 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. With Xperi’s annual licensing of more than 100 million connected TV units, and complementary relationships with major content providers, consumer electronics manufacturers, and automotive OEMs, our combined company will transform the home, car, and mobile entertainment experience for the consumer.”