Xperi, TiVo Combining for 10,000 Applications, Patents in $3B Deal
TiVo and Xperi agreed to combine. The $3 billion stock deal is expected to close in Q2 and shares of TiVo rose while Xperi fell after Thursday's announcement. TiVo will suspend plans to separate its product and intellectual property licensing.…
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“Potential” separation could occur later, they said. The product business expects to pursue "substantial cross-selling opportunities" in home and automotive. The combined company will be one of the largest licensing companies, spanning entertainment content, consumer electronics and semiconductors, management said. Patents and applications total more than 10,000, with “minimal licensee overlap,” they said. Xperi CEO Jon Kirchner noted the growing challenge of content discovery in home entertainment due to the proliferation of streaming offerings and providers: Their IP portfolio and personalization expertise will “address this challenge and participate over a much broader part of the entertainment value chain.” It’s no longer just live TV vs. Netflix, said TiVo CEO David Shull. He will be a strategic adviser during integration; for other executives, see the personals section of this publication's issue. “Virtually every traditional content provider has their own direct-to-to-consumer offering in the works,” Shull said, while streaming companies are developing content libraries. The combined firm's products will give MVPDs "a very differentiated offering,” Shull forecast. Xperi is launching a next-generation radio solution, Kirchner said, with a video offering next up. Content discovery and playback will be even more important in the age of semi- and autonomous vehicles, he said. Xperi Chief Financial Officer Robert Andersen noted its relationships with the top 10 TV brands that will offer licensing access for TiVo content discovery and personalization. He will continue as CFO. Xperi closed down 11 percent at $18.63. TiVo rose 6.2 percent to $8.38.