During the second quarter, George Soros (Trades, Portfolio) purchased a 4,066,666 stake in Rovi Corp. (ROVI, Financial) at an average price of $16.86. The trade has a 1.97% impact on Soros's portfolio. Since the trade, Rovi Corp.’s stock price has gained an estimated 33% in market value.
Rovi Corp. has a market cap of $1.87 billion, an enterprise value of $2.48 billion, a P/B ratio of 1.83 and a P/S ratio of 1.83.
Rovi Corp. was originally founded in Delaware in 2007. The company is engaged in the discovery and personalization of digital entertainment. The company has a broad portfolio of licensable technology patents, which covers many aspects of content discovery, digital video recording (“DVR”), video on demand (“VOD”), over-the-top (“OTT”) including multi-screen functionality and personalization, as well as interactive applications and advertising.
According to the company’s most recent 10-K filing, it has expanded its licensing into connected televisions, multiple screen devices such as tablets, smartphones, personal computers and game consoles, as well as media streaming devices. GuruFocus gives Rovi Corp. a 7 of 10 profitability and growth rating with an operating margin of 13.23%, ranking it above 77% of the 1835 companies in the global software application industry.
According to one of the company's employees, Sanjay Chandra, three things are changing in the global software application industry:
Who is consuming content
How they are consuming it
Where they are consuming it
“It’s critical we stay ahead of that curve. And that’s why we need to innovate," Chandra said. "We’ve got content explosion, we’ve got phenomenal machine learning techniques, and we’ve got virtual reality. I think an explosive combination of these three is going to define the future. We have an exciting opportunity to be in the forefront of this constantly evolving entertainment technology industry, and to make a big impact, it's beautiful”.
George Soros (Trades, Portfolio) may have decided to establish a position in Rovi Corp. because the company has nearly a decade of operating experience, is expanding its license agreements into multiple devices and is an innovator in machine technology, as well as virtual reality. The company has reported strong revenue growth per share over the previous 10 years, at an annual rate of 11.90%. The company also has a high Piotroski F-Score of 7, which indicates that the company is in a very healthy situation financially.
George Soros (Trades, Portfolio) is a multibillionaire who founded Soros Fund Management and the Open Society Foundations. His fund currently owns 154 stocks with an estimated total value of $3,229 million.
Disclosure:Â Author does not own any shares of this company.
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