Rovi selling online video unit
Rovi Corp. (Nasdaq: ROVI) says it wants out of the Rovi Entertainment Store business and will sell it off as "part of its ongoing strategic efforts to focus the company on growth opportunities related to its core enabling technologies and services," a company press release stated.
The service, best known as the power behind Best Buy's CinemaNow online movie service, became part of Rovi when the company purchased Sonic Solutions in February 2011 and renamed it Rovi Entertainment Store. It's not a bad business, Rovi's President-CEO Tom Carson said in the news release.
"The Rovi Entertainment Store has grown significantly since Rovi acquired it… 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," Carson said in the news release.
It's just not where Rovi wants to be.
"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," Carson said. "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."
In announcing its intention to sell the Rovi Entertainment Store business, the company also reiterated that it would host an analyst and investor meeting at CES in Las Vegas this week to "provide an update on the business and provide additional financial information for 2013."
- Rovi issued this press release