Ailing digital video recorder TiVo has raised $51.8 million in a private sale of convertible bonds.
The senior notes are due 2006 and carry a 7% interest rate. They're convertible into common stock at $6.73 a share, In April the compan had $71.7 million in cash and investments but was burning cash at the rate of $17 million a month.
The new money may not buy much. TiVo will give a better look when it posts earnings on Thursday, but in its last report the company said that its marketing spending came to a huge $514 per subscriber and that company-wide cash burn came to $1,400 per new customers.
That, notably, is for a PVR buyer who, at best, pay $10 a month to subscriber to TV schedule data.
- John M. Higgins