May 12, 2021
TiVo has edged out a competing bid from Roku and others for the intellectual assets of bankrupt MobiTV, a distributor of software for on-demand programming, live TV, catch-up TV, network DVR and content recommendations without the need of a set-top box.
TiVo’s winning bid of $18.5 million, which includes $17.4 million in cash, beat a collective $18 million offer from Roku, patent licensor RPX and Amino Technologies. TiVo’s initial bid during the two-day process had been $13 million.
MobiTV, based in Emeryville, Calif., filed for Chapter 11 bankruptcy protection on March 1, citing $10 million to $50 million in assets and $50 million to $100 million in liabilities.
“The acquisition of the MobiTV assets immediately expands our capabilities and the addressable market for our IPTV solutions, helping to secure TiVo’s position as a leading provider of pay-TV solutions,” Jon Kirchner, CEO of Xperi, said in a statement. “As a result, the acquisition of MobiTV’s managed service assets will help accelerate our growth in the IPTV market through an increased subscriber footprint.”
MobiTV delivers a full TV platform, including live and on-demand content, network recording functionality and transport rights. The platform could provide an attractive extension of TiVo’s IPTV pay-TV service offerings by adding managed services with the ability to reduce deployment time and onboarding costs. MobiTV will help increase TiVo’s IPTV penetration with pay-TV operators enabling them to rapidly launch a branded, fully featured, app-based TV service. The acquisition includes MobiTV’s patent portfolio, which is highly complementary to Xperi’s existing media patent portfolio.
The closing of the transaction is subject to various conditions, including approval by the bankruptcy court. Subject to bankruptcy court approval and pending closing, Xperi expects MobiTV’s operations to continue in the ordinary course. The acquisition is expected to close by early June 2021 and to be accretive beginning in 2022.