Rovi Corp., which provides on-screen guides for pay-TV listings, has agreed to buy digital-video recording pioneer TiVo Inc. in a deal valued at $1.1 billion.
Rovi will pay for $10.70 per share in cash and stock, according to a statement Friday.
Much of TiVo's value to Rovi derives from intellectual property related to its development of DVRs. TiVo successfully settled several patent infringement lawsuits over the devices in recent years, including with Alphabet's Google, Cisco Systems and Dish Network.
Rovi relies on licensing revenue from its on-screen TV guides and has recently fought Comcast, Amazon.com and Netflix over patent-infringement claims. The Santa Clara, California-based company, formed through the 2008 merger of Macrovision and Gemstar, is one of the largest owners of patents for digital entertainment devices.
TiVo, founded in 1997, once was the default verb to describe the act of digitally recording TV. The company has been striking deals to supply set-top boxes or license its technology to cable and satellite-TV operators as it tries to tap into more U.S. TV households.
-- Bloomberg News