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Rovi Corporation (formerly known as Macrovision Corporation) has agreed to buy TiVo in an $1.1B stock and cash deal.
The combined company company will be called TiVo, and the CEO will be the current CEO of Rovi: Tom Carson.

The deal provides that Rovi will pay about $10.70 per share of TiVo stock, broken down into $2.75/share in cash and Rovi stock worth $7.95/share. The amounts may change before the deal finalizes, depending on the movement of TiVo and Rovi stock. However, Rovi will not pay more than $3.90 per share in cash.

Shareholders of both companies must agree to the sale and it may be scrutinized by antitrust regulators.

[Ed. Addition.] Also covered at Ars Technica which notes:

The deal seems to be centered on patents. According to The New York Times , Rovi's interactive TV program guides account for less than half of its $526 million revenue last year, while the rest is made up of its licensed intellectual property. TiVo made a name for itself with its DVR technology, but the patents that make its DVR hardware and software work are proving to be more valuable. Together, Rovi and TiVo have over 6,000 patents issued and pending in the digital entertainment space.

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