An Apple stockholder suggests that the company should buy TiVo, a DVR, streaming and unified entertainment system introduced in the late 90s.
Chuck Jones wrote in his article in Forbes that Apple should buy TiVo to enhance its competitive position in the television phase with a side note informing that he owns Apple shares. As TiVo's shares drop, Jones thinks that it will be a waste to lose a company that offers great user interface which he found other DVR systems lack.
He stated that TiVo's DVR functionality is helpful and its overall functionality is top notch even though its controller has more buttons than Apple's. Having on-screen interface and TiVo's controller combine, Jones believes it to be a strong addition to Apple's TV approach. TiVo Bolt also allows users to watch a show 30 percent faster and hear audio at a regular pitch.
TiVo also has an outstanding and strong patent portfolio, it has been awarded with 467 domestic and foreign patents and have relatively 332 domestic and foreign patent pending applications. "Multimedia Time Warping System" or the U.S. Patent No. 6,233,389 describing an invention that grant users to store selected tv shows while synchronously watch or store another program. This feature expires in July 2018, a possible negative impact on the inventor's business.
"One indication of TiVo's patent position is the $1.6 billion it has received from intellectual property litigation," Jones stated in his article. The amount breaks down as follows, $500 million from DISH, $490 million from Google and Cisco, $250 from Verizon and AT&T for $215.
Jones also indicated in his article how Apple would cost TiVo less than $2 billion if it were to match the DVR company's five year high of about $19, TiVo had $141 million in cash and cash equivalents in its October 2015 financial results. Having a $185 million in convertible senior notes for a net cash position of $486 million and $530 million in short-term investments. A 59 percent of its $826 million market with a share price of $8.68.
