TiVo’s “strategic review” could end in split
January 29, 2019
By Chris Forrester
TiVo’s share price on the NASDAQ exchange jumped 4.3 per cent on January 28th following rumours that the “strategic review” that it has been carrying out might result in the business splitting in two.
Set top technology company TiVo announced its merger plan with rival Rovi in April 2016 in a $1.1 billion deal.
For some months TiVo has stressed that it is undertaking this strategic review of its options one of which could see it split off its Intellectual Property portfolio and licensing business, and separate these from its existing product-based set-top box business.
Its next quarterly statement is due in February and it is expected that interim CEO Raghu Rau could make a statement on the company’s future at that point.
However, a business split is not the only possibility. Other options, and already mentioned by Rau, could include combing with another party, or a “transformative” acquisition, or even taking the company private.