Post by dkennedy on Feb 16, 2005 5:51:40 GMT -5
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
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
