Technology company Rovi announced through a press release that it began the process of buying the digital video recording (DVR) set-top box (STB) company TiVo for USD 1.1 billion.
The acquisition will be completed in the second half of 2016 if approved by regulatory agencies and it will adopt the name of the famous STB. The operation could be very costly for Rovi if the purchase is not fulfilled as it would have to pay TiVo between USD 9.2 million and USD 36.6 million for the cancellation.
“In joining forces with Rovi, our customers, employees and stockholders will benefit from being part of a more diversified industry leader with significantly greater market opportunities”, said TiVo’s CFO and interim CEO, Naveen Chopra.
“The acquisition of TiVo, with its innovative products, talented team, and substantial intellectual property portfolio, strengthens our position as a global leader in media discovery, metadata, analytics, and IP licensing”, stated Rovi’s CEO, Tom Carson.
Pay-TV operator Tigo Star (Millicom) will integrate TiVo together with Spanish OTT provider Optiva Media to its services in Colombia, in the first instance, with three different STBs. It will continue to expand in the rest of its Latin American operations (Guatemala, Honduras, Nicaragua, Costa Rica, Bolivia, Paraguay and El Salvador) in the near future.