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. TIVO and Rovi Corporation ROVI; the other one concerns Pandora Media Inc P.

TiVo & Rovi?

On early Thursday, the New York Times said that, according to sources familiar with the issue, 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, people briefed on the talks assured.

But, buying TiVo is not an easy task. In the past, Apple Inc. AAPL, Google, Microsoft Corporation 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.

None of the companies involved have issued comments yet. Nonetheless, Albert Fried's Rich Tullo has. “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,” he assured.

Pandora

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. Tullo shares some thoughts on the issue.

“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,” the analyst 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 went on to explain.

“If I were selling Pandora I would add a director like Mr. Vinciquerra to the board. If were buying Pandora I would send Mr. Vinciquerra to Pandora to aid in integration. Just a speculation,” Tullo concluded.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.