TiVo considers dropping stock market listing
February 28, 2018 11.27 Europe/London By Julian Clover
TiVo could merge with another company or even return to private hands, under proposals currently being considered by the company’s board.
In a statement issued following a strong Q4 performance, the company said its current stock price was not at a level which reflected the true value of the business. It said it had begun to evaluate a range of strategic alternatives to realise long-term subscriber growth.
“These options range from transformative acquisitions that would accelerate our growth, to combining our business with other leading players, to becoming a private company,” TiVo said. The company has hired LionTree Advisors to assist the Board in the evaluation.
The modern TiVo has extended far beyond the advanced digital video recorders where it made its name. It includes the Rovi licensing business and has the expertise of a number of companies acquired in recent years, including search and recommendation specialists Digitalsmiths and Polish tech firm Cubiware.
TiVo reported annual profits of $18.4 million compared with $9.8 million in 2016.
“I expect 2018 to be a transformational year for TiVo, a year where we will hone our focus on execution that drives growth. We need to determine the optimal path to maximize our value proposition, so we can best deliver shareholder value. I am very confident in our ability to succeed because we have an outstanding team to execute our next phase of growth,” said Enrique Rodriguez, President and CEO of TiVo.
Approximately 22 million subscriber households around the world use TiVo’s advanced television experiences.