TiVo to split its business into two divisions
Details
Michelle Clancy
| 05 March 2019

Entertainment technology and audience insights provider TiVo is preparing to segment its businesses into two halves: One for its licensing and intellectual property/patent activities; and the other focussed on its set-top and DVR products.

The idea, according to TiVo interim CEO Raghu Rau, is to make it easier to find buyers and investors as the company continues to review the possibilities for strategic transactions. The company began a strategic review last February.

“So we do agree that this process has taken longer than we had hoped, particularly because of the complexity and uniqueness of our two businesses,” Rau told investors on the company’s Q4 earnings call. “We’re hoping that we’ll give you another update the next quarter based on the ongoing discussions that we are having. But beyond that, I’m not willing to put a time limit on when this will happen because the interest of the Board and the management is to ensure that we get the best outcome for the shareholders and that’s what this whole review process has been focussed on.”

TiVo was acquired by Rovi for $1.1 billion in 2016, with the combined company adopting the TiVo name.

The company saw a net loss of $2.33 per share to end fiscal year 2018, compared to a profit of 28 cents a year ago. Revenue for Q4 came in at $168.46 million, which is a significant 21% off the year-ago quarter, and well under analysts’ estimates of $173.85 million.