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TiVo Inc. (TIVO) Message Board

  • wwwhead222 wwwhead222 May 4, 2011 3:11 PM Flag

    DISH Wants to Cause Trouble For Others?

    I know that with DISH raising $2B on top of their $3B cash that rumors of a possible offer for TIVO are making the rounds. Here is one thought...DISH now has cross-license rights to the TIVO patents. TIVO now has its IP validated and a 'clear' standard to prove infringement, more or less. What if DISH didn't really want TIVO at a high price, but did want to 'put them in play'?

    Just a thought, but say DISH offers a paltry $15 per share. Wouldn't AT&T, Verizon, Microsoft, Google, Apple, etc. all put serious consideration into offering more? DISH could, essentially, force a bidding war to ensure that others have to pay a premium price for the Time Warp license that DISH got 'on the cheap' through the end of the patent's life. In essence, it would be a competitive advantage if they essentially pay 50 cents per box per month ($200M over the remaining patent life) while forcing competitors to bid up TIVO and pay much more.

    The winner of the bidding war would then have to charge the losers that do not already have licensing rights more money to recoup their cost of the purchase. Not only that, but it adds/continues litigation distraction in the DVR space for competitors while DISH can possibly focus on innovating with some tie into Blockbuster. Maybe that's a stretch, but I can see a possible strategy here.

 
TIVO
14.06+0.16(+1.15%)Aug 27 4:00 PMEDT

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