Digital TV company Rovi is buying TiVo in $1.1 billion deal

Digital TV listing company Rovi is buying TiVo in a cash-and-stock deal valued at about $1.1 billion. Rovi Corp. said it will pay $10.70 in cash and stock for each TiVo Inc. share. Rovi will pay $2.75 per share in cash, or about $277 million. The rest, $7.95 per share, will be paid in stock. Once the deal closes, the combined business will use the TiVo name.

Rovi CEO Tom Carson will serve as chief executive of the new company. He said in a written statement that the buyout will help to extend services across platforms and expand its customer base. The transaction will add more than 10 million TiVo-served households to Rovi's current customer base of about 18 million households using its guides globally.