TiVo & Xperi in $3 Billion Merger

Xperi Corporation and TiVo Corporation have entered into a definitive agreement to combine in an all-stock transaction, representing approximately $3 billion of combined enterprise value.

The transaction creates a leading consumer and entertainment technology business and one of the industry’s largest IP licensing platforms, with a diverse portfolio of entertainment and semiconductor intellectual property. The first step in the combined company’s value creation plan will focus on integrating the companies’ respective product and IP licensing businesses.

Following the completion of the merger, Xperi’s CEO, Jon Kirchner, will serve as CEO of the new parent company, and Xperi’s CFO, Robert Andersen, will serve as chief financial officer. TiVo’s CEO, David Shull, will continue as a strategic advisor to ensure a successful integration.

The new parent company will take the Xperi name but will continue to provide entertainment services under the TiVo brand, alongside Xperi’s premium DTS, HD Radio and IMAX Enhanced brands.

“This landmark combination brings together two highly complementary companies poised to set the industry standard for user experiences across the digital value chain,” said Kirchner. “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. Additionally, the combined company will continue to unlock the value of our strategic and sizable patent portfolios by bringing together our deep industry expertise and powerful innovation engines. Through greater scale and diversity, we will deliver attractive and sustainable long-term cash flow and shareholder value.”

“There is more content, and more ways to enjoy that content, than ever before,” said Shull. “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.”

Shull added, “TiVo’s management team and board have engaged in a comprehensive review of TiVo’s businesses over the past year, and we are confident that this combination with Xperi is the right path forward for all our stakeholders. While we previously planned to separate our product and IP licensing businesses in April 2020, we believe today’s combination with Xperi will enable us to create even more value for our shareholders in both the near and long term by allowing each to go to market with greater financial and operational scale.”