Rovi received what it describes as the "key regulatory clearance" for its proposed $1.1 billion merger with TiVo, securing approvals from the Federal Trade Commission and the anti-trust arm of the U.S. Justice Department.
The deal between the two high-profile pay-TV technology vendors is still subject to closing conditions, including approval by respective shareholders. The principals say they're still on target for their projected third-quarter closing date.
"We continue to see tremendous opportunity for the combination of TiVo and Rovi," said Naveen Chopra, interim CEO and CFO of TiVo, in a statement. "Together we possess key product, technology, and service capabilities to redefine television. We look forward to utilizing these assets for the benefit of both our customers and stockholders as soon as the transaction is completed."
The cash and stock deal creates a new company valued, Rovi said, at around $3 billion and armed with nearly 6,000 patents and $800 million in annual revenue. The deal, the company added, will create $100 million in synergies, with TiVo combining its expertise in advanced set-tops and user interfaces with Rovi's knack for metadata, programming guides and ad tech.
"The combination of Rovi and TiVo brings together two industry powerhouses focused on ushering in the next wave of the consumer entertainment experience," added Tom Carson, CEO of Rovi. "Our complementary products, services, and innovative patented technologies will transform the media and entertainment landscape, further enabling our customers to build more profitable relationships with consumers."
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