The business was acquired in February 2011 as part of Rovi's $720 million acquisition of Sonic Solutions.
"The Rovi Entertainment Store has grown significantly since Rovi acquired it in February 2011, and we believe it will continue to grow and provide an excellent platform for on-demand media delivery as retailers and content owners move to distribute more content online," CEO Tom Carson said in a statement. "However, we are working to drive Rovi's future growth and increase operational efficiencies around a strategic plan building on our core assets and IP, and to ensure the management team is fully focused on that effort. We are aligning primarily around delivering enabling solutions for our service provider customers and using those efforts to also generate growth with our Consumer Electronics and other customers. Consequently, we have decided to sell the Rovi Entertainment Store business."
Rovi also said that had the company classified the Entertainment Store business as discontinued operations when it provided guidance in November, the company would have estimate 2012 revenue at $645 million to $655 million, with adjusted EPS of $2 to $2.10 a share. Now the company expects revenue of $645 million to $650 million, with profits of $2.05 to $2.10 a share.
Rovi in late trading is up 77 cents, or 4.9%, to $16.62.
