Kudelski view on OpenTV bid
June 5, 2009
Kudelski Group has been talking about its bid for the share in Open TV it doesn't already own which Open rejected as inadequate. “Based on Kudelski’s discussions with [OpenTV’s] Special Committee, Kudelski has concluded that continued discussions will not be fruitful and has therefore decided to withdraw its proposal and terminate discussions with the Special Committee.”
According to Kudelski, “several key customers and major shareholders” of OpenTV had supported the “full integration” of OpenTV and Kudelski’s Nagravision, a supplier of conditional-access systems.
Kudelski said it was committed to remaining OpenTV’s controlling shareholder and reiterated its position that OpenTV “faces serious strategic challenges” if it doesn’t adapt to meet market demands for integrated, next-generation set-top box technologies.
Kudelski said its concerns about OpenTV have “been met repeatedly with reluctance” and that it “intends to advocate through its board representation that OpenTV substantially increase its investment in next-generation solutions, mainly organically but also potentially through acquisitions… While this strategy is likely to depress OpenTV’s financial performance over the next few years, such efforts and investments are required to insure OpenTV’s long-term success.”
The company added: “Without such investments, Kudelski believes that the long-term viability of OpenTV’s business as a standalone entity is seriously in doubt.”