DealsOnTheWeb Daily Deal: OneCall's Weekend Sale - 20 Great Items at Great Prices All Weekend Long
Analyst: Apple is Interested in TiVo
by , 3:55 PM EST, February 23rd, 2005
Apple Computer is interested in buying digital video recorder (DVR) pioneer and market leader TiVo, according to a Wall Street Analyst.
"What we hear on the street is that Apple is interested in their business and that they are a takeout target," analyst Steven Kroll Jr. of Monness, Crespi, Hardt & Co. told Reuters.
While the TiVo has become the Macintosh of the DVR market, with its users often described as die-hard and fanatical fans, the company has been viewed harshly by Wall Street because of its inability to grow its subscriber base fast enough to become profitable.
This was ameliorated somewhat when the company reported last week that it had added 698,000 subscribers, bringing its total subscriber base to more than 3 million.
Still, concern about TiVo's subscriber base has resulted in the company's stock losing much of its value in the last 12 months, falling from a 12-month high of US$10.80 per share in March 2004 to as little as $3.40 per share in recent weeks. Today, the stock jumped some 20% in heavy trading as rumors of a potential takeover from Apple swept the Street.
Other companies, including media giants Time Warner and Comcast, and its erstwhile satellite TV partner DirecTV have also been discussed as potential suitors in recent months, but none of those rumors moved the stock like today's talk of Apple.
Reuters also listed Sony and Liberty Media as being mentioned as potential suitors.
TiVo CEO Mike Ramsay, who recently announced he would step down from that position, has repeatedly said his company was not for sale, but the company's low market cap of $354 million has fueled takeover speculation.
There is more information in the full article at Reuters.
*In the interest of full disclosure, the author holds a small share in both APPL stock and TIVO stock that was not an influence in the creation of this article.
Observer Comments
Wed Feb 23, 2005 5:17 pm Subject: Play it smart Apple
Wed Feb 23, 2005 5:46 pm Subject: Could be a major opportunity
Apple & TiVo combined would be fantastic and cost less than 10% of their cash holdings. The potential opportunities are stronger than with any other company TiVo could merge with simply because of the innovation that Apple could bring to the party and the technology TiVo brings.
Wouldn't recommend selling your stock in either, Bryan.
QuoteAnonymous wrote:
I dont think so. Apple would need to explain why? WTF does apple want a DVR for? Thats not computing, apple doesnt do TV.
Well, how about this:
Apple re-writes the Tivo software so that it runs on OS X and Windows. You now have 3, all new options for Tivo:
1) Buy a normal, Tivo box for $100 and use it like you do now.
2) Buy a tiny, cheap Tivo box with no hard drive. It sits on your TV but is connected to your Mac or PC in the next room. The software runs on that and you use your computer hard drive to save shows. It also works the other way. You can buy movies or TV shows on iTunes now, and stream them to the Tivo box on your TV set.
3) Buy a Mac mini and put it on your TV. Works like #2, only much easier and more direct. Plus you can surf the net on your TV. Devices like this have always failed in the past because they were expensive and you don't really NEED to surf the net on your TV. But hey, if you can buy something that's a Tivo AND a computer, why not?
Once they've got all that, I'm sure you can find lots of ways to fit the iPod into those plans. (I'm thinking of 2 or 3 already.)
I just made all that up in 2 minutes. Imagine what Apple could be thinking up.
LOL "What we hear on the street". Why do I get the feeling this is just another analyst playing to all the Apple Media Center people for attention.
Apple can do whatever they want with whatever kind of Tivo device they like, but as I've said before, there is no escaping the fact that the ideal implementation in terms of simplicity and functional ability involves being integrated with the cable box. A while back someone had mentioned the coming CableCard technology as a solution to this problem and that would indeed work. But it seems rather far off. And besides, with all of the crazy standards flying around and shifts in technology that are occuring, I just don't see a space that is big enough or comfortable enough to allow Apple to create the type of product they would want to create. Perhaps in a few years things will be settled down enough. Maybe. I'm not sure what technology Tivo would have that Apple would actually need and not be able to develop even better in house. Maybe when Tivo is on the brink of destruction, Apple can buy up their patents.
And just for the record I love my Tivo.
QuoteGuest wrote:
I dont think so. Apple would need to explain why? WTF does apple want a DVR for? Thats not computing, apple doesnt do TV.
Regardless of the rumour being true: "I don't think so. Apple would need to explain why? WTF does Apple want a music store for? That's not computing, Apple doesn't do music.
Feel free to do the same for desktop printing, scanning, photo-editing, ...
Computing is so last century...
Apple will have to buy Tivo for their hardware. I feel sorry for the iDisciples who buy the Mac Mini thinking they will record and watch HD content. Then they buy all of the extras like a wireless bluetooth adapter for a "remote," because the Apple one-button mouse doesn't work well when pushed on the carpet of their living room floor. And an external hard drive, and an EyeTV recorder to hook up to their Mini. Then their neighbors will come over and look at all of the devices attached to the Mini and ask, "What is that?!" And the iDisciple will tell them, "It is convergence!" LOL.
QuoteSmith wrote:
Apple will have to buy Tivo for their hardware. I feel sorry for the iDisciples who buy the Mac Mini thinking they will record and watch HD content. Then they buy all of the extras like a wireless bluetooth adapter for a "remote," because the Apple one-button mouse doesn't work well when pushed on the carpet of their living room floor. And an external hard drive, and an EyeTV recorder to hook up to their Mini. Then their neighbors will come over and look at all of the devices attached to the Mini and ask, "What is that?!" And the iDisciple will tell them, "It is convergence!" LOL.
So you think Apple needs to buy an entire company...for their remote control? I'm pretty sure then can come up with one of those on their own.
I think the important part of Tivo is the subscription service, the current customers, and the means of transporting and encoding the video. THAT's the stuff that they can't invent on their own. If they had that then Apple can merge it with any hardware they currently have or wish to make up. Yeah, they'll probably keep the current Tivo boxes, but they'd probably start integrating the service into other products as well.
Thu Feb 24, 2005 10:58 am Subject: Microsoft is biting their nails
M$ is trying desperately to get into the "home media market". As hard as they're trying with music, it ain't workin' for them. Next, of course, comes video. If Apple can buy TiVo, I imagine that Jobs and Co. will create something that will have success similar to the iPod. Let's hope this happens.
Recent Headlines - Updated Friday, July 4th, 2008
- Fri., 7:30 AM
- Happy Fourth of July!
- Thu., 4:50 PM
- Apple Slashes $400 from SSD Drive in MacBook Air
- 4:05 PM
- It's Official - Firefox Sets Guinness Record for Downloads
- 3:30 PM
- Apple Files Patent for a Multi-touch Gesture Language
- 2:20 PM
- Editorial - Mac's Market Share and the Cascade Failure of Windows
- 1:35 PM
- iPodObserver - Apple Slurps Up Samsung's NAND Flash for iPhone 3G
- 1:05 PM
- WSJ: Tips for Switching from Windows to Mac
- 12:05 PM
- iPodObserver - Google Intros Google Talk for iPhone
- 11:35 AM
- iPO Just a Thought - iPod nano Versus iPhone: Decisons, Decisions...
- 10:55 AM
- YouTube Ordered to Turn Over All User Records to Viacom
- 10:10 AM
- Hot Forum Topic - Apple vs. Cell Carriers: Who's Winning the Game
- 9:25 AM
- iPodObserver - Rumor: Best Buy, Radio Shack to Sell iPhone 3G
- 8:45 AM
- .Mac Bookmark Sync Deadline Extended to July 6
- 8:10 AM
- Adobe Reader 9 Hits the Streets
The Mac Observer Reader Specials
- Download Typestyler, still the Ultimate Styling Tool for Internet, Print and Video Graphics. Works great in Classic with a Native OS X Version on the way. Free Tryout: www.typestyler.com
- OWC: Upgrade to a Larger Hard Drive, Add Additional Drives SATA for Mac Pro and G5s, up to 1.0TB in each Bay. 500GB from $90!
MacPro Memory 667Mhz With Apple Spec Heat Sink 2GB $90 / 4GB $134 / 8GB $264. Click to Maximize your Macs...
Mac observers can now play Party Poker for Mac as well as Mac casino games by going to MacPokerOnline.com.
RamJet Memory: MacBook 1Gig $39, 2Gig $78, 4Gig $195! Mac Pro 2Gig $115, 4Gig $189! 500G Seagate SATA II $139! Click hereFor the latest Apple products use Ciao a comparison website to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate cell phones.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.

