Investors sell shares after EchoStar ruling
First the court snatched away a legal victory from TiVo — and then investors snatched away its money.Company endured a legal setback Tuesday when an appellate court judge in Washington, D.C., ordered a stay of the injunction against EchoStar that had prohibited the satcaster from selling its own DVR. Ruling means EchoStar won’t have to modify or recall its several million DVRs — at least for now. Almost immediately after the ruling, investors began a TiVo selloff, sending the stock down more than 6% in after-hours trading. Earlier this year, TiVo had been victorious in several legal rounds against the satcaster, winning $74 million from a Texas jury in the spring; in August, a federal district court judge upped the amount to $90 million and issued the injunction. Investors, who had counted on the TiVo legal triumphs as a way for company to settle with or extract royalties from competitors, were now faced with the possibility that the battle would be tougher than they had thought. TiVo responded by noting that patent cases have a history of stayed injunctions. As cable companies move more aggressively into digital recording, TiVo has been pursuing a multipronged strategy, pursuing competitors in the courts while also trying to provide advertising services to Madison Avenue shops eager to mine data on the commercial-averse crowd. Separately on Tuesday, California-based company Alviso disclosed that it had completed a stock offering that would net it about $65 million to pursue those strategies.