Seeking growth, it issues $74 mil in stock
TiVo may still be looking to reach profitability with its core digital video recording business, but it’s already positioning itself for broader growth, issuing $74 million worth of stock and acquiring a home networking technology company to boost its bid to become the center of the networked home.
Company is selling 8 million shares of its common stock at $9.30 per share, a 15% discount on its closing price of $11 on Tuesday, to an unidentified group of institutional investors.
It plans to use the new funds in part for marketing and customer acquisitions, but also will use some to invest in research and development, and capital expenditures.
Among those expenditures is the acquisition of Strangeberry, a small Palo Alto, Calif.-based company that develops home network and broadband technologies for use with the TV.
TiVo plans to use Strangeberry’s intellectual property to fuel its initiative, recently announced at the Consumer Electronics Show, to give subs the ability to move content between PCs and televisions using the TiVo box as a hub.
“DVR was just the beginning for TiVo,” said CEO Mike Ramsay. “We’re very committed to extending the TiVo experience to a host of new and exciting, yet very easy to use, services for our subscribers. Strangeberry shares this vision and can help us accelerate innovation for the TiVo service.”
Acquisition was based entirely on equity, but TiVo did not reveal further financial details. Deal includes Strangeberry’s intellectual property and engineering staff.