Set-top box maker TiVo (TIVO) is in advanced talks to sell itself to digital entertainment guide provider Rovi (ROVI), the New York Times reported on Thursday, citing people briefed on the talks.
Shares of TiVo, which had a market value of about $750 million as of Wednesday’s close, jumped as much as 22.8% to $9.41, while Rovi’s fell as much as 2.1% to $20.51.
TiVo and Rovi did not immediately respond to requests for comment.
TiVo shareholders would likely own about 30% of the combined company.
TiVo’s set-top boxes are in high demand from cable users as they also allow access to online video services such as Netflix (NFLX), Hulu and Google’s (GOOGL) YouTube.
Up to Wednesday’s close, TiVo’s shares had fallen 28.6% in the past 12 months, while Rovi’s had fallen nearly 9%.