Entertainment technology and audience insights specialist TiVo has revealed it is exploring a range of strategic alternatives to realise long-term shareholder value. These options range from transformative acquisitions that would accelerate its growth, to combining the business with other leading players, to becoming a private company. The Company has engaged LionTree Advisors to assist the Board and management in their evaluation of alternatives.
According to TiVo, its stock price is at a level that the company and its Board do not believe reflects the true value of the business given the company has a strong foundation, with leading technologies, and solid cash flow from its long-term IP licence agreements and guide deployments.
The news came as TiVo reported its Fourth Quarter and 2017 Full Year Financial Results.
“I am pleased to report that we delivered strong performance in Q4 across a number of financial and business fronts,” said Enrique Rodriguez, President and CEO of TiVo. “We have strong operating cash flows and once again declared a quarterly cash dividend. We also made substantial progress towards our financial integration goals and are now targeting achieving $110 million in post-TiVo Solutions acquisition annual run-rate synergies as we continue to integrate the legacy TiVo organisation and operations. In the quarter, we delivered TiVo Experience 4 by integrating numerous company offerings into one product that displays the advantages of our content discovery experience and software and services. Further, we continued to strengthen our IP licensing business by renewing Altice’s US pay-TV licence and expanding our licensing relationship with Google to include YouTube TV,”.
“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 maximise 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,” he concluded.