The big picture: The combined company is expected to be a force in the patent licensing industry. Between them, they'll have more than 10,000 patents and applications with minimal overlap. By the end of 2021, they expect to save at least $50 million annually through the integration of patent portfolios.

TiVo earlier this year was considering splitting its hardware and patent licensing divisions into two separate businesses. That potential path is now off the table as the company has agreed to merge with San Jose-based Xperi Corporation as part of a $3 billion deal.

Xperi is a technology company that caters to clients in the home, automotive and mobile industries. Once combined, the two aim to help consumer electronics and automotive companies better address the massive shift happening in the media and entertainment distribution and consumption sectors. This will, in part, include integrating TiVo tech into Xperi's family of products.

Upon close, TiVo shareholders will own 53.5 percent of the combined company with Xperi shareholders laying claim to the remaining 46.6 percent. Furthermore, each company's debt will be refinanced on a combined basis, we're told. They have secured $1.1 billion in financing from Bank of America and Royal Bank of Canada to help make it all happen.

The transaction has already been approved by the boards of both companies. Pending customary regulatory approval, the two sides expect the deal to close in the second quarter of 2020.

Lead image courtesy CNN