The combined company will be “one of the industry’s largest intellectual property licensing platforms,” reaching hundreds of businesses and tens of millions of consumers, according to the official announcement.
When the merger closes, Xperi shareholders will own about 46.5% of the combined business, and TiVo shareholders will own roughly 53.5%.
The exploding amount of entertainment content helped propel the deal. TiVo has specialized in entertainment content, while Xperi’s products address the home, automotive, and mobile devices.
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Patents and licensing, which have kept TiVo afloat long after its original technology was copied and overtaken by a host of players in the pay-TV business, will remain at the core of the merged company. The new entity will control more than 10,000 patents and applications.
“This landmark combination brings together two highly complementary companies poised to set the industry standard for user experiences across the digital value chain,” Xperi CEO Jon Kirchner said. “Together, we will be able to integrate TiVo’s leading content aggregation, metadata, discovery, and recommendation capabilities with our home, automotive, and mobile technology solutions to help our customers create experiences that excite and delight consumers.”
TiVo CEO David Shull said, “There is more content, and more ways to enjoy that content, than ever before. In a rapidly expanding and fragmenting digital universe, consumers want and need to be able to easily find and enjoy the content that matters to them. TiVo has always been the company that brings entertainment together. Now, we can significantly expand our mission. With Xperi’s annual licensing of more than 100 million connected TV units, and complementary relationships with major content providers, consumer electronics manufacturers, and automotive OEMs, our combined company will transform the home, car, and mobile entertainment experience for the consumer.”
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