US firm Rovi has confirmed that it is seeking a buyer for its Rovi Entertainment Store business, a platform for on-demand media delivery, as part of ongoing efforts to refocus its attention on growth opportunities related to its core enabling technologies and services.
“The Rovi Entertainment Store has grown significantly since Rovi acquired it in February 2011, and we believe it will continue to grow and provide an excellent platform for on-demand media delivery as retailers and content owners move to distribute more content online,” said Tom Carson, President and Chief Executive of Rovi Corporation.
“However, we are working to drive Rovi’s future growth and increase operational efficiencies around a strategic plan building on our core assets and IP, and to ensure the management team is fully focused on that effort.
“We are aligning primarily around delivering enabling solutions for our service provider customers and using those efforts to also generate growth with our Consumer Electronics and other customers. Consequently, we have decided to sell the Rovi Entertainment Store business.”
Rovi Entertainment Store includes the CinemaNow business, a digital video distributor with a library of around 14,000 films, TV shows and concerts, and also powers the the video-on-demand store of major US retailer Best Buy.
As a result of this decision, Rovi will reclassify the operating results of the Rovi Entertainment Store as discontinued operations, beginning with its fourth fiscal quarter and full fiscal year 2012 results. Latest forecasts for its fiscal 2012 revenues are in the range of US$ 645mn-650mn.