TiVo announced that it plans to separate its Product and IP Licensing businesses into two independent businesses.
TiVo’s IP Licensing business - Rovi and TiVo - patent portfolios encompass approximately 5,500 issued patents and pending applications worldwide. Hundreds of millions of consumers have access to its innovations through license agreements with leading video providers around the world, claims the Company. TiVo's licensees include traditional and new media video providers across Pay-TV, OTT, Mobile, Consumer Electronics and Social Media markets. For the full year 2018, IP Licensing revenue was $295 million, with a high percentage of this recurring revenue.
TiVo’s Product business - Platform Solutions and Software and Services businesses, offers a suite of component technologies that can be integrated into any of its customers’ internally developed platforms or deployed as an integrated TiVo solution for video service providers or retail markets. As of December 31, 2018, there were an estimated 23 million households worldwide utilizing TiVo's Platform Solutions. For the full year 2018, our Product segment generated $401 million in revenue, with a large component of recurring revenue.
By separating from our IP Licensing business, TiVo believes that its Product business can pursue a customer-first strategy without the encumbrances or complexity of being tied to an IP Licensing business.
Raghu Rau, Interim President and CEO, TiVo
Operating independently, these two businesses will have increased flexibility to pursue new and growing market opportunities. We believe this separation is the best way to maximize shareholder value, while also enhancing the possibility of value-creating strategic transactions.
