TV provider TiVo sets IPO at 5.5 mln shares
Reuters Story - September 08, 1999 13:21
WASHINGTON, Sept 8 (Reuters) - On-demand television provider TiVo Inc. said Wednesday it plans to sell 5.5 million shares in a projected range of $11-$13 per share, according to a Securities and Exchange Commission filing.
TiVo relies on a personal video recorder manufactured and sold by Koninklijke Philips Electronics to support its programming, which allows subscribers to choose what they want to watch when they want.
It also gives advertisers the ability to target ads to viewer preferences.
The Sunnyvale, Calif.-based company said it plans to use the estimated $60 million it hopes to raise to boost advertising and promotion of its service, develop new products and for other general corporate
purposes.
TiVo began offering the personal video recorder and service to the general public on March 31. Through June 30 it had generated $8,000 in subscriptions, which retail for $9.95 per month, $99 per year, or a lifetime subscription for $199.
To boost sales, the company also plans to launch a marketing campaign using marketing resources from DIRECTV, a direct broadcast satellite television provider and a division of Hughes Electronics Corp. .
TiVo had $11.6 million in net losses during the first six months of this year and an accumulated deficit of $21.9 million, according to the filing.
The underwriters of the IPO, Credit Suisse First Boston, Allen & Co. Inc., BancBoston Robertson Stephens, and Thomas Weisel Partners LLC, have been allotted an extra 825,000 shares in the event of heavy demand.
While TiVo has not disclosed when exactly it plans to go public, the company has applied to sell its shares on Nasdaq under the "TIVO" symbol.
The $60 million figure cited in the company's filing with the SEC was only used as a basis to calculate the SEC registration fee. |
