Apple to Buy TiVo?

By Alice Hill
Forget the essentially ho-hum news about the new iPods. (The new iPod Photo lets you upload photos directly from your camera, and the rest are just more hard drive space for less money.) Reuters and the site Mac Rumors is covering an odd blip in TiVo’s stock amid speculation that Mr. Jobs was going to snap up the beloved but troubled company.

My take: there is no way this one will happen. But here’s what the Reuters piece had to say: “What we hear on the street is that Apple is interested in their business and that they are a takeout target,” said analyst Steven Kroll Jr. of Monness, Crespi, Hardt & Co. Representatives for Apple and TiVo both declined comment.

“TiVo’s chief executive, Michael Ramsay, has said the company is not for sale. But with a market capitalization of only $300 million, analysts figure the company might be an easy target, perhaps from consumer electronics makers to media companies looking to bolster their video services. Several companies have been discussed as potential suitors for TiVo, including Time Warner Inc. and Comcast Corp., Sony Corp., and Liberty Media.

“Analysts said that Apple’s focus on its immensely successful iPod digital music player would probably preclude it from going after money-losing TiVo, whose growth strategy has been questioned due to the rise of cheaper DVRs being deployed by cable TV providers. The shares jumped to $4.22, up 53 cents, in afternoon trade after earlier hitting a session high of $4.45. Volume was 10.7 million, more than double its daily average.”