TiVo says it’s undervalued on Wall Street, could go private

TiVo Bolt DVR
TiVo has hired LionTree Advisors to perform an evaluation of its options, which could include acquisitions or going private. (TiVo)

TiVo said it’s currently undervalued on Wall Street and has hired a consultant to examine options including taking the company private. 

The current iteration of TiVo was formed two years ago, when Rovi Corp. bought the erstwhile TiVo Corp. for $1.1 billion. TiVo has now hired LionTree Advisors to perform an evaluation of its options, which could include acquisitions or going private. 

“TiVo’s stock price is at a level that the company and its board do not believe reflects the true value of the business given the company has a strong foundation, with leading technologies, and solid cash flow from its long-term IP license agreements and guide deployments,” TiVo said in a release.

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San Jose, California-based TiVo’s shares were up 13% at $15.30 in after-hours trading.

RELATED: TiVo files more patent suits targeting Comcast’s X1 platform

TiVo is currently in the process of rolling out its next-gen “Experience 4” video platform, which integrates over-the-top and linear content with voice navigation. The tier 2 and tier 3 MSO market will undoubtedly be a driver for this new product.

However, the Rovi-based patent trollish side of the business might be the company’s biggest revenue driver overall. The Rovi division is currently engaged in a bitter technology licensing battle with Comcast, claiming that Comcast’s X1 platform is built largely on its intellectual property. The cable company says Rovi’s patents are largely obsolete, and that it’s developing its own technology in its own labs these days.