Apple buying TiVo?

[John Crichton]

Link here.

TiVo shares rise on takeover speculation
Wed Feb 23, 2005 03:25 PM ET
NEW YORK, Feb 23 (Reuters) - TiVo Inc. (TIVO.O: Quote, Profile, Research) shares jumped more than 17 percent on Wednesday, fueled by speculation that Apple Computer Inc. (AAPL.O: Quote, Profile, Research) might make a try to buy the digital video recorder maker, analysts said. "What we hear on the street is that Apple is interested in their business and that they are a takeout target," said analyst Steven Kroll Jr. of Monness, Crespi, Hardt & Co.

Representatives for Apple and TiVo both declined comment.

TiVo's chief executive, Michael Ramsay, has said the company is not for sale. But with a market capitalization of only $300 million, analysts figure the company might be an easy target, perhaps from consumer electronics makers to media companies looking to bolster their video services.

Several companies have been discussed as potential suitors for TiVo, including Time Warner Inc. (TWX.N: Quote, Profile, Research) and Comcast Corp.(CMCSA.O: Quote, Profile, Research) , Sony Corp.(6758.T: Quote, Profile, Research) and Liberty Media(L.N: Quote, Profile, Research) .

Analysts said that Apple's focus on its immensely successful iPod digital music player would probably preclude it from going after money-losing TiVo, whose growth strategy has been questioned due to the rise of cheaper DVRs being deployed by cable TV providers.

The shares jumped to $4.22, up 53 cents, in afternoon trade after earlier hitting a session high of $4.45. Volume was 10.7 million, more than double its daily average.

I have no idea if this is bad or good. TiVo is fairly affordable right now. Apple tends to charge an arm and a leg for their services. It is interesting, tho.

 

[PatrickLawinger]

Link here.



I have no idea if this is bad or good. TiVo is fairly affordable right now. Apple tends to charge an arm and a leg for their services. It is interesting, tho.

Actually, I don't know that Apple really does charge all that much for their services, at least not when I count what I receive for my money. That is a different debate though.

I am rather surprised by this. Apple has plenty of available technology and software to record programs etc. on a Mac. My guess is that they wan't to provide some simple manner of recording programs to your hard drive. I believe they already had something available though. I know that it is easy enough to do on a Mac if you want to. Does TiVo have anything else going on software or hardware -wise?

Personally, I have a DVR through the cable company. This means that if something goes wrong with it, it is theirs and they replace it. I have replaced 3 in 2 years. After making those replacements, I don't think I'd ever want to own a box. Unless it has changed, with TiVo you purchase the box.

 

[reveal]

With Microsoft wanting to get more into the Home Media market, this makes perfect sense. Tivo is a popular product that, IMHO, is better than what you can get from the cable company (I know, no HD support, but the vast amount of options available, such as taking things off your Tivo onto your hard drive, makes up for it). This is a perfect opportunity for Apple to swoop and try to capitalize on an exsiting products popularity.