When the merger closes, 46.5% of Xperi shareholders will own the company, while 53.5% will be owned by TiVo shareholders. The companies expect to achieve at least $50 million of annualized run-rate cost savings by year-end 2021 through the integration of their respective product and IP licensing businesses, the majority of which are expected within the first twelve months after closing.
“This landmark combination brings together two highly complementary companies poised to set the industry standard for user experiences across the digital value chain,” says Jon Kirchner, chief executive officer, Xperi. “Together, we will be able to integrate TiVo’s leading content aggregation, metadata, discovery, and recommendation capabilities with our home, automotive, and mobile technology solutions to help our customers create experiences that excite and delight consumers.”
The merger is aimed to capitalize on the growing amount of video content available to consumers while leveraging the extensive patent portfolio of TiVo and Xperi.
“There is more content, and more ways to enjoy that content, than ever before,” said David Shull, chief executive officer, TiVo. “In a rapidly expanding and fragmenting digital universe, consumers want and need to be able to easily find and enjoy the content that matters to them. TiVo has always been the company that brings entertainment together. Now, we can significantly expand our mission. With Xperi’s annual licensing of more than 100 million connected TV units, and complementary relationships with major content providers, consumer electronics manufacturers, and automotive OEMs, our combined company will transform the home, car, and mobile entertainment experience for the consumer.”
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