Attention Apple (AAPL)! Stop Banging Your Head against the Wall and Buy TIVO (TIVO)

August 17, 2012 2:16 PM EDT
Get Alerts TIVO Hot Sheet
Price: $11.34 --0%

Rating Summary:
    12 Buy, 15 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 16 | New: 50
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Here is an interesting choice. Apple (Nasdaq: AAPL) could continue to lose millions on its current Apple TV Platform or it could acquire TIVO (Nasdaq: TIVO) for $1.5 to $2 billion. That is analyst Rich Tullo's, of Albert Fried & Co, take on the situation. In a report today, he poses a few more choices for Apple.

Apple could spend years to develop the core competencies in negotiating with MSOs and integrating its technology front end with the diversity of MSO back ends or . . . Apple could acquire TIVO.

Apple could end up spending $500 million to secure the technologies and to reverse engineer an APPL compatible STB, or . . . Apple could acquire TIVO.

Apple could commercialize an iBox costing hundreds of dollars per unit and spend $100 million on marketing the new product or . . . you guessed it, Apple could acquire TIVO.

Tullo predicts that acquiring TIVO could create about $25 to $50 million in operational synergies for Apple and TIVO. He also thinks manufacturing synergies are possible as TIVO boxes could benefit from Appleā€™s low cost supply chain.

Albert Fried and Company has an Overweight rating and a $15 price target on TIVO.

For an analyst ratings summary and ratings history on TiVo click here. For more ratings news on TiVo click here.

Shares of TiVo closed at $9.23 yesterday.

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