SUNNYVALE, Calif. – TiVo Inc., provider of a subscription-based television service, went public September 30, offering 5.5 million shares at $16 apiece. The company’s stock priced well above its $11 to $13 filing range.
Underwritten by Credit Suisse First Boston, Allen & Co. Inc., BancBoston Robertson Stephens and Thomas Weisel Partners, the initial public offering left 35.8 million shares outstanding. There were no selling shareholders.
Venture backers included Institutional Venture Partners, New Enterprise Associates, DIRECTV Inc., Sony Corp. of America Inc., Philips Venture Capital Fund and Discovery Communications Inc.
TiVo, through its personal video recorder and subscription-based television service, allows customers to watch programs whenever they want. The system allows viewers to pause or rewind live TV shows, record a season’s worth of episodes and skip commercials.
The company plans to use the expected $80.6 million generated from the IPO for advertising and promotion, development of new products and services, working capital and for general corporate purposes. TiVo might use a portion of the proceeds to acquire additional businesses, products or technologies, lease additional facilities or establish joint ventures.
The company has never been profitable, losing $3 million in the six months ended June 30, 1998 and $11.6 million in the six months ended June 30.
Geoffrey Yang, a general partner at IVP, and Stewart Alsop, a general partner at New Enterprise, both joined the company’s board of directors in October 1997. Larry Chapman, executive vice president of DIRECTV, joined in April. Jan Oosterveld, director at Philips, John Hendricks, chairman and chief executive officer at Discovery, and Howard Stringer, chairman and chief executive officer at Sony, all followed in September.
TiVo – Selected Financial
(in thousands, except per share data)
August 4, 1997 (inception) Year Ended Six Months Ended June 30
to December 31, 1997 December 1998 1998 1999
Total revenue 8
Net loss -595 -9,721 -3,046 -11,628
Net loss per share -0.2 -3.25 -1.04 -2.67