Grasshopper
09-28-2007, 06:20 AM
Since EchoStar unveiled its deal to acquire Slingbox maker Sling Media, industry press, observers and analysts are full of questions as to the greater implications of the union. But one of the more interesting topics of discussion has been centered around what the EchoSling transaction means for TiVo.
Specifically, what the DVR specialist may be worth in light of EchoStar's $380 million bill.
According to an investment note on Barron's, Alan Gould, an analyst at Natixiz Bleichroeder noted that Sling, offering its popular device to place-shift video has sold more than one million units, has no recurring revenue and has relatively no competition. On the other hand, TiVo has around 1.7 million customers paying on average $9 per month, and another 2.5 million DIRECTV subs kicking in another $1 per month, the analyst said.
And TiVo, as the entire pay-TV industry is well aware, is facing a lot more competition than Sling.
With TiVo reporting an enterprise value of $520 million, Gould said TiVo stock has a limited downside. The analyst added that even though Comcast's rollout of TiVo is taking a little longer than expected, the cable giant's customers should be getting the TiVo service soon.
Gould said a decision in the company's patent case against EchoStar should come either this year or early 2008. The analyst also said that the U.S. Patent Office's "recent validation" of a majority of TiVo's claims strengthens the DVR company's case.
Specifically, what the DVR specialist may be worth in light of EchoStar's $380 million bill.
According to an investment note on Barron's, Alan Gould, an analyst at Natixiz Bleichroeder noted that Sling, offering its popular device to place-shift video has sold more than one million units, has no recurring revenue and has relatively no competition. On the other hand, TiVo has around 1.7 million customers paying on average $9 per month, and another 2.5 million DIRECTV subs kicking in another $1 per month, the analyst said.
And TiVo, as the entire pay-TV industry is well aware, is facing a lot more competition than Sling.
With TiVo reporting an enterprise value of $520 million, Gould said TiVo stock has a limited downside. The analyst added that even though Comcast's rollout of TiVo is taking a little longer than expected, the cable giant's customers should be getting the TiVo service soon.
Gould said a decision in the company's patent case against EchoStar should come either this year or early 2008. The analyst also said that the U.S. Patent Office's "recent validation" of a majority of TiVo's claims strengthens the DVR company's case.