TiVo announced the start of a strategic review that could lead to the company being acquired or going private. Releasing its annual results, the company said its stock price did not reflect the full value of the business and it would look at a "wide range of strategic alternatives to realize long-term shareholder value".
The announcement follows recent reports that the company has attracted interest from private equity investors. TiVo hired LionTree Advisors to assist in the review.
TiVo reported annual results up in line with its guidance. Fourth-quarter revenues fell 15 percent year-on-year to USD 214 million, after a boost in the year-earlier period from the Samsung licensing deal. Adjusted EBITDA fell to USD 75 million from USD 105 million a year ago, while the net profit nearly doubled to over USD 18 million thanks to a one-time tax gain of USD 27 million.
TiVo finished the year with over 22 million subscribers. The company said it's also increasing the targeted synergies from the Rovi merger to USD 110 million per year from an original estimate of USD 100 million.
The group did not give an outlook for 2018, saying it will refrain from issuing guidance during the review period.
