Pandora Sale, Rovi-TiVo? 2 M&A Rumors Circling The Street
Two interesting M&A rumors were circling the Street on Thursday morning. One involves TiVo Inc. (NASDAQ: TIVO) and Rovi Corporation (NASDAQ: ROVI) and the other one concerns Pandora Media Inc (NYSE: P).
TiVo & Rovi
The New York Times, citing sources familiar with the issue, said Rovi is in advanced negotiations to acquire TiVo. TiVo shareholders would reportedly receive both cash and stock; however, the price tag is yet to be determined.
Buying TiVo is not an easy task. Apple Inc. (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOG)'s Google, Microsoft Corporation (NASDAQ: MSFT) and others have tried to acquire the company. Now, pushed by Glenn W. Welling of Engaged Capital, which has two seats on Rovi's board, it's Rovi's turn to give it a shot.
Albert Fried's Rich Tullo said in an email to investors, "We think a deal could make sense and if it's an equity deal; a share for share merger could generate an ample premium. We think such a deal would generate ample IP, operating, and revenue synergies."
The Deal Reporter's morning flash included a story about M&A potential at Pandora, after Anthony J. Vinciquerra, who has strong activist ties, joined the company’s Board of Directors.
"While we like Pandora long term we are giving this round of speculation a little credence because last night Pandora announced the addition of Anthony J. Vinciquerra," Tullo stated.
"Mr. Vinciquerra has been an advisor to TPG and ran Fox Networks group. We think Pandora’s long term prospects that the company suggests will generate $4 billion in revenue by 2020E may be attractive to a potential buyer or private equity concern,” he explained.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
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