Tivo Exploring Sale Or Merger; Stock Up 12%

(RTTNews) - Shares of Tivo Inc. (TIVO) surged over 12 percent in after-hours trading after the set-top box company said it will explore "all alternatives to maximize shareholder value."

The company said its stock price is at a level that does not reflect its true value of the business given it has a strong foundation, "with leading technologies, and solid cash flow from its long-term IP license agreements and guide deployments."

Tivo said it has begun a process of evaluating a wide range of strategic alternatives, which includes a potential sale, or acquiring another company, or going private.

The company has engaged LionTree Advisors to assist the Board and management in their evaluation of alternatives.

CEO Enrique Rodriguez said, "I expect 2018 to be a transformational year for TiVo, a year where we will hone our focus on execution that drives growth. We need to determine the optimal path to maximize our value proposition, so we can best deliver shareholder value. I am very confident in our ability to succeed because we have an outstanding team to execute our next phase of growth."

The San Jose, California-based company reported fourth-quarter profit of $18.44 million or $0.15 per share, up from $9.80 million or $0.08 per share last year.

The company said revenue for the quarter fell 15.1% to $214.24 million. This was down from $252.34 million last year.

TIVO closed Tuesday's trading at $13.55, down $0.05 or 0.37%, on the Nasdaq. The stock, however, gained $1.65 or 12.18% in the after-hours trading session.