NEW YORK (TheStreet) -- Rovi Corp. (ROVI) stock is down 1.40% to $19.79 in afternoon trading on Thursday following reports that the San Carlos, CA-based digital entertainment technology company is considering acquiring TiVo (TIVO), according to the New York Times.

A potential transaction would include a cash and stock offer with TiVo shareholders owning about 30% of the combined company, sources told the Times.

TiVo has a market value of $750 million, while Rovi's market value is around $1.7 billion.

The companies' main advantage is that they have more than 6,000 issued or pending patents that would allow the combined entity to defend itself against larger technology and media companies, the Times added.

TiVo stock is soaring 21.93% to $9.34 on heavy trading volume this afternoon. So far today, 11.48 million shares of the television software provider have been traded, more than 10 times its average daily volume of 949,033 shares.

Separately, Rovi has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as revenue, earnings per share and net income growth, and its weaknesses, including disappointing return on equity.

You can view the full analysis from the report here: ROVI

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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