Smith Barney Says a TiVo Apple Deal Unlikely
According to Dow Jones, brokerage firm SmithBarney said today that they see a marriage between Apple and TiVo as unlikely. “We view this supposition as contradictory to commentary from our recent meeting with members of AAPL’s senior management,” SmithBarney said. “AAPL management indicated it sees the DVR headed toward commodity status,” and “we believe AAPL wants to stay focused on selling select proven products,” the broker added.
SB currently has a sell rating on TiVo and $3.50 target price, “based on our view that no merger is imminent,” and that TiVo has a number of issues to tackle in 2005 that will impede growth.
Josh Bernoff, the influential Forrestor analyst whose writing has focused on consumer behavior and new technology devices also was just on CNBC predicting that the deal, “doesn’t happen.” Bernoff did add a challenge to Steve Jobs though that he step up and consider the deal as he seemed to feel that it made sense.