As usual
A company having complete control over its presence decides to surrender the hard part thinking things will go better.
Regardless of whether or not Tivo is doing well or why, what makes them think that handing over the hardware to a 3rd party is going to make things better ?
Yes, they will get rid of hardware issues. They could also get rid of that by making a better product, but that is clearly pie-in-the-sky thinking these days.
What they will actually be doing is handing over the platform to someone who will have a vested interest in expanding the platform to other players to increase the footprint. Meaning they will abandon their power to dictate what the platform does and does not. They will be forced to deal with platform changes that, in the long term, may not favor them.
But hey, long term is someone else's bonus, right ?