Tivo expanded its strategic relationship with Time Warner on Tuesday, to the tune of $43.5 million in working capital.
The funding is actually a restricted fund already earmarked as part of a pact between Tivo and America Online announced last summer. The deal provided for a $200 million investment from AOL in Tivo, which committed to spending $21.5 million in promotion on AOL Time Warner properties.
The release of the $43.5 million to Tivo comes with a quid pro quo: Tivo is reducing the exercise price of 2.3 million warrants AOL holds in Tivo from $23.11 to $7.29.
Meanwhile, Tivo reported a loss of $87.9 million for the 2000 fourth quarter, more than double the $34.9 million it lost during the same period one year earlier. Its sold 80,000 PVR units during the quarter, adding 63,000 subscribers to bring its total subscriber count to 136,000. - Richard Tedesco