Tivo, which still exists, just got bought for $1.1 billion
In the dark ages, before on-demand everything, TV just came and went. You had to be in front of the tube for whatever program you wanted to watch, or else use an ancient device called a "VCR" to record things. It was horrible.
These days, being able to pause, rewind and record TV seems almost unnecessary -- thanks to the Internet and massive leaps in set-top box technology. But for a time, digital video recording company TiVo reigned.
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And in its defense, it still kind of does. On Friday, digital TV listing company Rovi bought TiVo for a total of $1.1 billion.
Once the deal closes, the combined business will use the TiVo name.
Rovi CEO Tom Carson will serve as CEO of the new company. The executive said in a written statement on Friday that the buyout will help to extend services across platforms and expand its customer base. The transaction will add more than 10 million TiVo-served households to Rovi's current customer base of about 18 million households, using its guides globally.
Yes, 10 million people are still using TiVos.
The companies anticipate at least $100 million in annual cost savings. The transaction is expected to add to Rovi's adjusted earnings per share within the first year after closing.
Both companies' boards have approved the deal, which is targeted to close in the third quarter. It still needs approval from both companies' shareholders.
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Jason Abbruzzese is a Business Reporter at Mashable. He covers the media and telecom industries with a particular focus on how the Internet is changing these markets and impacting consumers. Prior to working at Mashable, Jason served as Markets Reporter and Web Producer at the Financial Times. Jason holds a B.S. in Journalism from Boston University and an M.A. in International Affairs from Australian National University.
