Advanced Television

Major hedge funds back TiVo

January 28, 2013

By Chris Forrester

PVR supplier TiVo has won support from another pair of hedge fund investors. The market speculation is that while TiVo is on a financial roll, winning new subscribers and a steady stream of patent litigation battles, the two new backers are hedging their bets and anticipating a buyout from a richer player.

The names, billionaire Ken Griffin (founder of Citadel Investment Grp, a $32 billion fund) has bought 5.2 per cent of TiVo (6.6 million shares) and joins Steve Cohen at SAC Capital (a $20 billion fund) which had boosted its ownership to a total of 5.57 million shares during the previous quarter-year.

TiVo still has patent actions against Motorola, Cisco and Time Warner, any one of which could be a potential buyer. But names such as Apple Inc., notwithstanding its massive share price collapse on January 24th, could also be a suitor and build-in TiVo “time-warp” technology into any Apple-branded TV system that it might introduce.

Categories: Articles, Business, Funding, PVR