TiVo Stock Jumps on Report of Sale Talks to Rovi
Rovi is one of the biggest owners of patents for digital entertainment devices.
Digital entertainment devices patent owner Rovi is in advanced talks to acquire DVR pioneer TiVo, The New York Times reported on Thursday. TiVo's stock jumped in early trading and was up 20.8 percent at $9.25 as of 11 a.m. ET.
Rovi shares were down slightly at that time.
Financial details weren't immediately clear, but the report said Rovi was offering cash and stock to combine with TiVo. Rovi shareholders would own about 70 percent of the combined company, it said.
Rovi's market value stood at about $1.7 billion as of the end of trading on Wednesday, and TiVo's at $750 million.
Rovi is one of the biggest owners of patents for digital entertainment devices, with more than 5,000 issued or pending patents worldwide. An activist investor has been pushing it to look at a deal with TiVo.
Early this year, TiVo named CFO Naveen Chopra interim CEO. Tom Rogers left that post after about 11 years but is continuing as non-executive chairman.
A TiVo spokesman declined comment on the report. Rovi said: "We do not comment on rumors in the marketplace regarding speculation of possible M&A transactions or otherwise."