Rovi to Buy DVR Maker TiVo for $1.1 Billion
Rovi Corp., a provider of digital entertainment guides, said on Friday it would buy digital-video recorder pioneer TiVo Inc. in a deal valued at about $1.1 billion.
The $10.70 per-share cash-and-stock offer represents a premium of 13.6 percent to TiVo's Thursday closing.
TiVo's shares, which have shot up about 23 percent since the New York Times first reported about a potential deal on March 24, were trading at $9.74 before the opening bell on Friday.
Rovi said it would pay TiVo shareholders $2.75 per share in cash and the remaining in stock of a new holding company that will own both Rovi and TiVo.
The combined company, which will be known as TiVo, will be led by Rovi Chief Executive Tom Carson.
The deal will add TiVo's more than 10 million customers to Rovi's 18 million.
Bloomberg reported on Thursday the companies were close to a deal and an announcement could be expected as soon as Friday.
(Reporting by Rishika Sadam in Bengaluru; Editing by Saumyadeb Chakrabarty)