Market Insight

Kudelski fails in bid to acquire OpenTV

June 02, 2009

Merrick Kingston Merrick Kingston Associate Director, Research & Analysis, Digital Media & Video Technology

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OpenTV has rejected the Kudelski Group's bid for full ownership of OpenTV. A Special Committee of the Board of Directors, assembled in February 2009, was convened to consider the Swiss pay-TV technology provider's proposal to buy the remaining non-Kudelski-owned Class A OpenTV shares at $1.35 per share. US middleware provider OpenTV rejected the proposal on the grounds that it was "inadequate." The $1.35 per share offer constituted a 35 per cent gratuity over OpenTV's 26 February 2009 closing price of $1.00 per share; OpenTV's 3 June 2009 opening price was $1.82 per share.


OpenTV's rejection of the bid is unlikely to alter the bundling that Kudelski's Nagravision conditional access system (CAS) and OpenTV's Core middleware have historically enjoyed. Despite the offer's rejection, Kudelski's control of OpenTV's economic and voting interests still stands at 31.6 and 76.9 per cent, respectively. Kudelski clearly indicated that it would not relinquish part ownership should its tender be snubbed. Given OpenTV's profitability, the full acquisition would likely have been an income boon to Kudelski. This aside, OpenTV's Core middleware and Nagravision's CAS will continue to be integrated as they have been since Kudelski's original, January 2007 OpenTV stock purchase.

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