TiVo Mulls Going Private, Among Other Strategic Alternatives

Digital video recording pioneer TiVo is pursuing range of strategic alternatives, including returning to private status, in an effort to enhance shareholder value, new CEO Enrique Rodriguez said on the Q4 (ended Dec. 31, 2017) fiscal call.

Despite myriad technology license agreements in place industrywide, including with four of the five top online TV services (Sling TV, DirecTV Now, PlayStation Vue and YouTube TV), in addition to Discovery, HBO, Netflix, CBS Interactive, A&E Network and Sony Pictures Entertainment, TiVo saw quarterly revenue fall 15% to $214.2 million compared with revenue of $252.3 million during the previous-year period. Net income topped $18.4 million compared to $9.8 million last year.

Meanwhile, TiVo shares have lost nearly 30% of their value over the past fiscal year.

As a result, Rodriguez is considering a series of moves aimed at upping the shareholder price. Tech advancements include the “TiVo Experience 4,” which enables users to more easily to search, navigate, buy or rent movies, TV shows, recorded content and over-the-top video via a voice-activated remote.

TiVo is also suing Comcast, claiming the cable giant’s X1 set-top violates eight of its patents.

“We need to determine the optimal path to maximize our value proposition, so we can best deliver value to our shareholders,” Rodriguez said. “We have enlisted LionTree Advisors, to assist us in this process.”

News of a possible return to private ownership sent TiVo shares up more than 10% in afternoon trading.

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