News
Analysis
Did
Time Warner Bid on TiVo?
The
DVR company denies that it's for sale, but
rumors persist that it's entertaining proposals.
By Phillip Swann
Washington, D.C. (Feb. 15) -- TiVo Chairman
and CEO Mike Ramsay says flatly that his company
is not for sale. Despite increasing competition
from cable-backed Digital Video Recording
services, TiVo does not need a new,
deep-pocketed owner to compete, he says. The
company's popular TV recording features -- and
advanced technologies -- will enable it to fend
off the competition.
However, rumors persist on Wall Street that
several companies may be interested in
purchasing TiVo. In fact, the company's stock
rose five percent on Monday largely on
unconfirmed reports that Time Warner had made an
offer for TiVo. Over the last few years, TW has
demonstrated an unusual interest in DVR products
and technologies. A few weeks ago, Reuters
reported that the cable-media company had
developed a technology that would enable DVR
owners to return to the start of a program once
it had begun.
But the Time Warner-TiVo rumor lost its steam by
late Monday, causing TiVo's stock to level off
on Tuesday. (Shares of TiVo fell about two
percent on Tuesday on lukewarm volume.)
Still, despite Ramsay's denial, TiVo would seem
to be a likely candidate to be sold for two
strong reasons:
1. Leadership Shake-Up
Ramsay announced last month that he plans to
step aside as company CEO. And, a few weeks
later, TiVo President Marty Yudkovitz said he
was resigning. Sometimes, when a company is
preparing to be sold, the top leaders announce
in advance that they are leaving, giving the new
owners a clean slate.
2. Company In Chaos
TiVo's stock has dropped nearly 40 percent over
the last month due to varying negative reports
about its future. The company's partnership with
DIRECTV is in great doubt and the cable
operators are reporting that more subscribers
are signing up for their non-TiVo DVR services.
Consequently, many analysts have concluded that
TiVo can not survive for the long term unless it
gets a new owner -- or a major partnership with
a cable operator who could offer TiVo's DVR
service to its customers. That's why the Time
Warner rumor seemed believable on Monday to many
Wall Street types.
Over the next several weeks, and maybe even
months, there will be more rumors about TiVo and
possible buyers, such as DIRECTV, Microsoft,
Sony, Apple and maybe Time Warner again. TiVo's
troubles are just beginning and it's highly
unlikely that it can survive without that
well-connected parent/partnership. The big
question, though, is when TiVo is ready to come
to the table, will there still be a
company interested in joining them?
.
Phillip
Swann, president of TVPredictions.com, has been
quoted on TV technology in dozens of
publications and by broadcast outlets, such as
The Chicago Tribune, The Hollywood Reporter, Fox
News and CNN. If you would like to contact Mr.
Swann, he can be reached at 703-505-3064 or at swann@tvpredictions.com
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