TiVo and Xperi are entering into a happy new union, with the two companies announcing that that have agreed to combine in an all-stock merger that values at $3 billion. Together, they say they will create a “leading consumer and entertainment technology business and one of the industry’s largest intellectual property licensing platforms with a diverse portfolio of entertainment and semiconductor intellectual property.”
Xperi is known in the radio business as the parent company of HD Radio, DTS and the DTS Connected Radio initiative, among other things.
With this merger, TiVo is expected to provide its content aggregation, discovery and recommendation capabilities with Xperi’s product capabilities in the home, automotive and mobile device ecosystems, helping consumers enjoy content anywhere, anytime, the two sides said.
The intellectual property licensing platform that will be offered by this newly formed company will reportedly serve markets in entertainment content, consumer electronics and semiconductors, and includes more than 10,000 patents and applications between TiVo and Xperi, TiVo said.
“There is more content, and more ways to enjoy that content, than ever before,” said David Shull, CEO of TiVo. “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.”
The new parent company will take the Xperi name but will still provide entertainment services under the TiVo brand, alongside Xperi’s DTS, HD Radio and IMAX Enhanced brands.
This merger will take the place of TiVo’s plans announced earlier this year that it was going to separate its product and IP licensing business.
Jon Kirchner, Xperi’s CEO, will take on the same role in the new parent company, with Xperi CFO Robert Andersen also serving as the parent company’s CFO. Shull is tapped with continuing as a strategic advisor to help out with the transition.
The merger has been agreed to by the board of directors of both companies and is expected to close during the second quarter of 2020, subject to regulatory approvals.