TiVo Expands Strategic Relationship With AOL Time Warner
SAN JOSE, Calif., Jan. 31 /PRNewswire/ — TiVo, Inc., (Nasdaq: TIVO) the
creator of and leader in personal television, today announced that it has
expanded its existing strategic relationship with America Online to include
an enhanced multi-million dollar marketing and promotional campaign with
AOL Time Warner (NYSE: AOL), the world’s first Internet-powered media and
communications company. Under this agreement, TiVo will be promoted across
AOL Time Warner online, print and television media properties, which will
focus on educating consumers about the popular TiVo personal television
service.
Additionally, in a separate agreement that will further strengthen the
companies’ strategic relationship, TiVo will gain access to $43.5 million in
restricted funds, which had been provided by AOL under its previously
announced agreement, which the company will use for working capital; and in
return, TiVo has agreed to reduce the exercise price of certain warrants held
by AOL. TiVo will reduce the exercise price of a warrant to purchase
2,308,475 shares of common stock held by AOL from $23.11 to $7.29 and will
also reduce the exercise price of a warrant to purchase 295,428 shares of
common stock held by AOL from $30 to $7.29.
“TiVo and AOL have a successful relationship, one that’s enhanced by our
similar missions — to do all we can to make our users’ lives easier and more
convenient,” said Barry Schuler, Chairman and CEO of America Online, Inc.
“This extension of our marketing relationship will enable us to work closely
with TiVo to help refine its marketing reach and educate both our audiences
about their great service.”
“AOL has been a great partner of ours for some time, and this expanded
agreement with AOL Time Warner will enable TiVo to continue its aggressive
marketing efforts to promote Personal TV to a broad audience, focusing on the
marketing channels that have worked best for us in the past,” said
Mike Ramsay, President and CEO of TiVo. “The combination of advertising
across both online and traditional media will allow us to execute innovative
marketing programs that can only be accomplished with a partner with the
incredible reach of AOL Time Warner.”
In June 2000, TiVo and America Online, Inc. announced a strategic
agreement under which TiVo would become an AOLTV programming partner, offering
AOLTV subscribers access to features of TiVo’s Personal TV(TM) Service. The
agreement also included an America Online investment in TiVo of approximately
$200 million. Under the terms of this new agreement, TiVo will spend
$21.5 million in programs to promote the TiVo service on AOL Time Warner
online and offline properties.