Apple/TiVo Bid Rumours Considered

TiVo jumps on Apple bid rumoursRumours pointing at Apple as a potential bidder for TiVo have given the digital video recorder company’s shares a healthy boost – and got people wondering whether the deal would be a good fit.

TiVo’s technology which allows viewers to skip ads breaks and to pause and rewind live television made it a must-have gadget, although some of the competition is catching up.

As of 31 January this year, TiVo had a subscription base of 3 million (the majority of them from DirecTV), and said it’d added around 698,000 subscriptions during its fourth quarter. And the company has said it is not for sale.

But for some, a tie-up between Apple and TiVo would be a marriage made in gadget heaven, bringing together some of the coolest gadgets – and brands – the industry has thought up in the last few years. And it is possible to see a few areas where it would make sense.

With Apple’s stock running at such a high price and TiVo’s suffering, the purchase of TiVo (the whole company is currently valued at under $400m), could be easy – almost a rounding error.

TiVo jumps on Apple bid rumoursNearly every media and technology company is aiming at the living room now, either with Media Centre-style PCs or other digital hubs to spread content such as video and music around the home.

For Apple, bringing video to its massively popular iPod would certainly be an understandable step, perhaps allowing users to dock the iPod with the TiVo and download favourite shows. But it is hard to see how popular this would be in the short term.

Neither TiVo nor Apple are commenting on the rumours. Other media giants have been floated as potential buyers for TiVo as well, and financial analysts remain split on whether any deal is on the cards.