NEW YORK, May 3, 2016 /PRNewswire/ -- The fairness of the proposed acquisition of TiVo Inc. ("TIVO" or the "Company") by Rovi Corporation ("Rovi") is the subject of an investigation by WeissLaw LLP. The investigation focuses on possible breaches of fiduciary duty and other violations of law by the Board of Directors of TIVO for agreeing to sell the Company to Rovi. On April 29, 2016, TIVO announced it had reached a definitive agreement for Rovi to acquire all of its outstanding shares in a transaction valued at approximately $1.1 billion. Under the terms of the agreement, TIVO shareholders will receive $2.75 in cash, and $7.95 to be paid in common stock from the newly combined company; representing a total per share consideration of $10.70.
WeissLaw LLP is investigating whether TIVO' Board acted to maximize shareholder value prior to entering into the agreement with Rovi. Notably, at least one analyst set a price target of $18.00, or $7.30 above the offer price. Additionally, the Company recently reported a 24% year-over-year increase in subscriptions, and an 11% year-over-year increase in Services and Software Technology revenue in the fourth quarter ended January 31, 2016. Finally, the acquisition is expected to be immediately accretive to Rovi's Non- GAAP earnings per share, offering $100 million in cost synergies within the first twelve months.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell TIVO and whether TIVO shareholders will obtain their fair proportionate share of the Company's continued success and future growth prospects. If you own TIVO shares and would like more information about your rights or our investigation, please contact Joshua Rubin either by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP