Rumors of the move have sent TiVo shares soaring by 17%. According to media speculation, other media companies including Time Warner, Comcast, Sony and Liberty Media may also be potential buyers.
The possibility of a takeover fight for TiVo is a result of the media company’s failure to increase its subscriber base in time to make a profit. Although it is thought that its subscriber numbers rose to three million in January after it cut the costs of its video recorders, the company has seen its share price slump in recent weeks.
Analysts have indicated that TiVo’s low market capitalization of $300 million is an attractive proposition for electronics and media companies who are eager to reinforce their video services. The ailing company’s technology offers a recording time of 14 hours and the capability to pause and rewind live footage.
However, doubt has been raised over Apple’s willingness to take over the money-losing firm, especially as its iPod collection is regularly updated, as demonstrated recently by the expansion of its iPod Minis and iPod Photo products. Apple is also pursuing a price cut strategy to maintain its popularity.
Both TiVo and Apple declined to comment on the speculation.
