The end of the year hit us with some exciting news: TiVo and Xperi are merging to create one of the largest licensing and consumer electronics product companies in the world! The $3 billion deal is quite a change of plans for TiVo.
In the beginning of 2019, TiVo was considering splitting their business in two halves: one product unit, one IP unit. Now, as the year comes to an end, the company has reconsidered and it’s merging with Xperi, a technology solution provider in areas such as mobile, automotive, audio, broadcast and semiconductors, as well as an IP licensor.
“This transaction combines two technology pioneers who have shaped how millions of consumers access and experience entertainment content, and whose innovations are found in billions of devices around the world.” reads Xperi’s press release.
Indeed the company’s solutions and patents can be found in a variety of businesses, from content providers to consumer electronics and automotive manufacturers. TiVo, on the other hand, may have been more known for their DVR set-top boxes but they bring along an enviable patent portfolio.
As a matter of fact, most of TiVo’s revenue came from patent licensing, not product selling. To get an idea of the magnitude of these licensors, imagine “more than 10,000 patents and applications between the two companies and minimal licensee overlap.”
After the merger, TiVo will take the Xperi name although the brand will not disappear.
“This landmark combination brings together two highly complementary companies poised to set the industry standard for user experiences across the digital value chain,” said Jon Kirchner , Chief Executive Officer of Xperi . “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.”
It’s gonna be an interesting 2020 with these two at the helm of technological innovation.