From Briefing.com today:
14:01 TIVO TiVo rumors Now Playing -- Beedaboop (6.08 +0.62) -- Update --
TiVo continues to find momentum interest since Newsweek report earlier this month that co and Netflix (NFLX) plan later this month to unveil a parternship allowing the download of Netflix DVDs. While the specifics of a potential deal remain murky, the Newsweek piece has revived interest in TIVO shares. As such, rumors are being pushed out at a pace of about one a day on the NFLX deal being imminent, TIVO working on a similar distrubtion deal with Time Warner (TWX), as well as other content providers. We called around to see exactly what the people who are paid to know TiVo inside and out thought. First, the Netflix/TiVo rumor remains in focus, with some analysts already having published notes on the potential ramifications of such a relationshop. The idea of a Tivo/Time Warner pact isn't being received as warmly. Since a Time Warner deal is the speculation of the day, and is aiding TIVO's advance today, investors/traders may be disappointed that the buyside is not putting much stock in this rumor. Interestingly, however, our converstations did unearth an old rumor that Comcast and News Corp may be interested in acquiring a name like TIVO. However, the sense is that TIVO rumors tend to appear when buyers want to squeeze the shorts a bit (short-interest in this name is about 27% of the float)... Generally, it seems that TIVO tends to benefit more from the possibilities associated with the rumors frequently circulated on the name. However, one analyst helps put the reality into perspective, saying that a TiVo deal with any of these companies would help the stock on the headline impact, but it does little for TiVo. His opinion is that a deal with any of these companies makes TiVo into more of a distribution company than a content company. And in the long run, distribution cos become commoditized. |
