TiVo has been talking about its “strategic review” for some time. The results are now in and the decision is that the business will split into two entities: a product-based business, which would have a typical $400 million a year revenue stream, and a licensing-based business.

TiVo also owns the Rovi business, and some observers see TiVo being the retained name for the hardware side of the business and that Rovi would be used for the licensing business.

CEO Raghu Rau said “We believe that the separation will increase flexibility in pursuing growing market opportunities. We expect to complete this transaction in the first half of 2020 through a spin out of our Product business to stockholders as a separately traded public company. We will provide greater details including the relationship between the Product and IP Licensing businesses, management teams, Boards and corporate brand identities for each business as we get closer to the separation date.”

The licensing business, which would hold TiVo’s IP and 5,500 issued patents and others still pending around the world.  TiVo believes the split will encourage a broader, new horizontal licensing strategy that can spur extra growth. The IP division last year generated $295 million in revenues.

TiVo said the split would be completed later next year and achieved with a tax-friendly spinoff for shareholders. The company said that other “value creating transactions” would follow.

TiVo also announced Q1 results with total revenues of $158.23 million, down 17 per cent y-o-y and an operating loss of $8.02 million, down from last year’s loss of $9.04 million.

Categories: Articles, Business, PVR, Results