TiVo has abandoned an earlier stated plan to split its product and IP licensing business, and instead will enter a $3 billion merger with San Jose technology company Xperi.
Xperi, which makes advanced circuitry and chip solutions for audio, imaging and computers, will maintain the name of the combined company. It will continue to use the TiVo brand for TiVo advanced video solutions, entertainment metadata and IP licensing.
Xperi changed its name from Tessera Holding in February 2017. Its biggest customer is Samsung Electronics, but it also does business with LG, Panasonic, Sony, Microsoft and China’s Huawei.
Related: Tivo Exiting the Box-Making Business
Jon Kirchner, CEO of Xperi, will continue his role with the combined company, as will Xperi CFO Robert Anderson. TiVo CEO Dave Shull, who joined TiVo in May to lead the split of product and licensing, will transition to strategic adviser.
"With Xperi's annual licensing of more than 100 million connected TV units, and complementary relationships with major content providers, consumer electronics manufacturers, and automotive OEMs, our combined company will transform the home, car, and mobile entertainment experience for the consumer," Shull said in a statement.
“This landmark combination brings together two highly complementary companies poised to set the industry standard for user experiences across the digital value chain,” added Kirchner.
The combined company will have one of the biggest IP licensing operations in the world, boasting more than 10,000 patents.