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Tivo Stock Soar With Another DTV Buyout Rumor

Discussion in 'DIRECTV General Discussion' started by CraigerCSM, Jun 15, 2010.

  1. CraigerCSM

    CraigerCSM Guest

  2. wilbur_the_goose

    wilbur_the_goose Hall Of Fame

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    Personally, I take this rumor with a grain of salt.
     
  3. xmetalx

    xmetalx Godfather

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    Yeah, I seriously doubt that.
     
  4. Drucifer

    Drucifer Well-Known Member

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    NY Hudson...
    Interesting read. Seems they're involved in lawsuits with almost everyone.
     
  5. HerntDawg

    HerntDawg Legend

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    I didn't buy a dvr a long time ago because i didn't want to pay 5 bucks a month, I haven't figured out how to get around it yet.
     
  6. smiddy

    smiddy Tain't ogre til its ogre

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    This is interesting! If DirecTV buy out TiVo it will inherit all of those lawsuits too. With the expectation of a new DirecTiVo coming sometime around the corner, this could change the game a bit for everyone else. :) But it is only a rumor so, time will tell. ;)
     
  7. evan_s

    evan_s Hall Of Fame

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    I really don't see why DirecTV would want to buy out Tivo. They've already got replay's patents which pretty much assures them mutual cross-licensing deals with Tivo so they don't have to worry about lawsuits.

    As a company selling a hardware package and service Tivo still isn't exactly a solid well, performing company. Their hardware and subscription services haven't consistently generated revenue for the company.

    DirecTV seems to be pretty happy with where their home grown software for the h/hr series is at and on the h/hr 24 platforms it seems to be plenty snappy. For those tivo fans they are already working on an option for that.

    Seriously, what does DirecTV get from buying Tivo? A bunch of lawsuits in process and a bunch of software development stuff that needs to be done to support the existing tivo boxes and their deals with cable co's. Why, would they want that?
     
  8. smiddy

    smiddy Tain't ogre til its ogre

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    It doesn't look very appetizing when you put it like that. I suspect we'll see this churn a bit to get "market reaction" so that someone who really knows can take advantage one way or the other. Litigation is not always a bad thing, and owning that intillectual property might be a way to be more competitive across all in home TV services (but I'm not counting those chickens, they might be deformed). :)
     
  9. wilbur_the_goose

    wilbur_the_goose Hall Of Fame

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    More news:
    TiVo Inc. (NASDAQ:TIVO) continued to rise and gained 5.30% to $8.44 on rumor that DIRECTV (NASDAQ:DTV) could bid for the company for $14-$15 a share in a stock deal, which is almost double from the prevailing market price of TIVO.
    This acquisition, if turns into real, would help DIRECTV in leveraging TIVO patents and brand to gain over its rival DISH Network Corp. (Nasdaq: DISH).
     
  10. Stuart Sweet

    Stuart Sweet The Shadow Knows!

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    DIRECTV already has access to TiVo patents due to their previous agreements. I don't know exactly what technology they're able to share but it's enough to help DIRECTV avoid lawsuits.
     
  11. j2fast

    j2fast Godfather

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    Without putting much thought into it the only benefit I can see would be to prevent someone else from buying Tivo and potential causing problems for Directv down the road?
     
  12. Matt9876

    Matt9876 Hall Of Fame

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    I found a way but you may not like it,It was mostly this darn economy and luck.
    I switched over to Dishnetwork and got a single 211k unit to save money,a couple weeks after I was active on the new service and reading up in the forums about the 211 discovered you can add an external USB hard drive to make it a DVR "one time $40 fee to activate the EHD"

    Bottom line I have a HD DVR and no DVR monthly fee. :)
     
  13. Doug Brott

    Doug Brott Lifetime Achiever DBSTalk Club

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    DIRECTV & TiVo already have cross-licensing in place. As long as they follow the rules of the agreement, DIRECTV (and TiVo) are good to go until the Patents expire. There is zero advantage technologically for DIRECTV to do this.

    There may be some advantage to getting the TiVo brand name. There may be some advantage to getting some of the Engineering staff .. There may be some advantage to getting some of the back-end data.

    My gut tells me that going after TiVo would be a bad plan on DIRECTV's part, but who knows .. strange things happen sometimes.
     
  14. camo

    camo Godfather

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    I feel the same here. In the end I doubt they succeed in the patent lawsuits.
    But would be nice having there engineers and technology on board.
     
  15. jacmyoung

    jacmyoung Hall Of Fame

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    I suspect what happened is this, ever since TiVo was hit hard by the recent appeals court en banc order to rehear the TiVo v. E* case, the TiVo force has been trying to find a way to pump up the stock, they believe a buyout will do, but so far no likely buyers can be found, they speculated about Google, Apple, ATT and Microsoft, Google is working with DISH on the GoogleTV, Steve Jobs already said his AppleTV is just a "hobby", he even used TiVo as proof why his AppleTV is just a "hobby".

    Of course TiVo is suing ATT/MS too, the cablecos are too fragmented to want to buy TiVo, that leaves DirecTV the only potential suitor. I think this is just some analysts spreading another rumor to pump up TiVo, they have done so many times in the past, sometimes a rumor about a licensing deal between DISH and TiVo, other times a buyout. None had panned out, but those rumors did pump up TiVo stock from time to time. Although the 5% gain is hardly "soaring" when you consider the market is also gaining at the same time.

    Having said that, anything is possible, never say never, but if the people here who knows DirecTV so well do not see the point of DirecTV buying TiVo, I'd assume the DirecTV management probably sees the same way.
     
  16. lgb0250

    lgb0250 Legend

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    I wonder if all these rumors had anything to do with this info just out this morning:

    DirecTV downgraded to Market Perform from Outperform at Wells Fargo
    Wells Fargo downgraded DirecTV citing a lack of catalysts, downside risk to estimates and valuation. :theflyonthewall.com
     
  17. wilbur_the_goose

    wilbur_the_goose Hall Of Fame

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    lgb - I work in the financial industry, and I've really started to abhor "analysts". Their opinions are often based on nothing but rumors and "inside" information (often incorrect).

    Sorry - just venting...
     
  18. smiddy

    smiddy Tain't ogre til its ogre

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    Speculation is what has gotten us into trouble in the past, think of the oil prices a year or so ago. Someone is purposefully trying to make something out of nothing, perhaps. :)
     
  19. jacmyoung

    jacmyoung Hall Of Fame

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    DirecTV stock was likely over valued because a similar ATT buyout rumor by some analysts in the recent past. This happened to DISH too two years ago. This is where the analysts make their money:)
     
  20. gregjones

    gregjones Hall Of Fame

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    Keep in mind that financial analysts get paid to make predictions. Make enough random claims and some of them will be true.
     

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