NEW YORK (TheStreet) -- TiVo (TIVO) - Get Report stock continues to surge, up by 21.67% to $9.32 on heavy trading volume on Thursday, after a report suggested the company could be acquired by Rovi Corp. (ROVI).

Tivo, which is a TV software services company based in San Jose, CA, is discussing a merger with Rovi, sources told the New York Times. Rovi is an entertainment technology company based in San Carlos, CA. 

The deal could grant TiVo shareholders about 30% of the combined company, according to the Times

Activist investor and Rovi board member Glenn Welling, who is the founder of Engaged Capital, has encouraged Rovi to combine with Tivo, according to the Times

Rovi stock is falling by 1.32% to $19.81 in mid-afternoon trading on Thursday. 

So far today, 11.37 million shares of TiVo have traded, well above the company's 30-day average of 945,000 shares. 

Separately, recently, 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 articles's author.

TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

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

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