TiVo Sued: A Taste of Their Own Medicine

[Bob Haller]

Just tired of arguing with people who can't see past Charlie's back-side.

charlie and his business have a target on them now for poor dishhonest business practices like selling the old low fee packages as contracts to new subs where their first bill will be the new higher pricing.

[jacmyoung]

charlie and his business have a target on them now for poor dishhonest business practices like selling the old low fee packages as contracts to new subs where their first bill will be the new higher pricing.

Aside from the fact I have no idea what you are talking about, I am not so happy to say that as a DirecTV sub, we just learned the fee increase, and on top of that, DirecTV will charge a monthly fee if we want to use the new MRV feature which will be strictly a software update, for many of us there will have no hardware changes involved.

[Don Landis]

What you know as soon as I commented about the buyout, I found this:


TMF: Re: Tivo modifies Change in Control Agreements / TiVo, Inc. (TIVO)

Personally I have doubts Charlie decided to buy TiVo, but if true, given how we know Charlie is, TiVo's investors can count on themselves being screwed

The TiVo heads will of course be covered. Seems to me if the above speculation is true, TiVo has already decided they will lose the appeal. Because if TiVo believes it will win, there is no possible chance TiVo would even consider selling to Charlie, not when there is another $300M+ from DISH awarded by the court, not to mention TiVo has the "poison pill" to prevent takeover, besides Charlie does not even have the money to buy TiVo at the current value. Therefore the only possible reason is TiVo realized they would lose, of course if that happens, Charlie will actually be able to afford it

Good find, jacmyoung...

I saw this and had a smile on my face too. It really is a tell all read between the lines piece.

For those who can't find the 8K form- here is the content absent the signatures and other form stuff-

"Effective January 19, 2010, TiVo Inc. (the “Corporation”) entered into amended and restated Change of Control Agreements (the “Agreements”) with its Senior Vice Presidents and Vice Presidents. Under the amended and restated Agreements, Senior Vice Presidents and Vice Presidents are entitled to receive 150% and 100%, respectively, of their annual salary and targeted bonus if they are terminated by the Corporation without “cause” or resign for “good reason” within 13 months following a change in control of the Corporation. Further, the unvested portion of any option to purchase the Corporation’s capital stock then held will immediately vest and/or the restrictions with respect to restricted shares or other equity awards of the Corporation’s capital stock will fully lapse in connection with any such termination or resignation. Equity awards contingent upon the attainment of one or more performance goals will become vested and/or restrictions will lapse with respect to shares of the Corporation’s capital stock that otherwise would have become vested during the year of termination as if the performance goals with respect to such year (or prior periods) had been obtained. Additionally, medical benefits for Senior Vice Presidents will continue for 18 months and medical benefits for Vice Presidents will continue for 12 months following such a termination or resignation. The terms of the amended and restated Agreements are otherwise materially consistent with the Corporation’s prior change of control agreements. The foregoing description of the amended and restated Agreements are qualified in their entirety by reference to the applicable provisions of those agreements, which will be filed as exhibits with the Corporation’s annual report on Form 10-K for the period ending January 31, 2010. "

Now the real guess is: Who made the offer?

If Charlie did, I suppose that will eat up the cache of profits and end any repeat of the huge dividend this year.

Other wild possibilities- MSFT, Google, Apple...


For investors, it may be a good time to buy some TIVO stock, especially now that the market is in a predicted pull back. Stocks usually run upward upon the announcement of a buy out. Personally, I put TIVO back on my daily watch list.

For fanboys of the TIVO equipment- look forward to a new party buy out because maybe TIVI will stop pouring money into lawyers and begin putting funds back into R&D and state of the art equipment for you.

[whatchel1]

Just tired of arguing with people who can't see past Charlie's back-side.

It has nothing to do w/ see past Charlie's back side as you state. It has to do with the fact that over here we keep up with the TIVO very closely and have not. The statements you have made show your lack of what has been going on.

[whatchel1]

charlie and his business have a target on them now for poor dishhonest business practices like selling the old low fee packages as contracts to new subs where their first bill will be the new higher pricing.

This seems to be all you can do is bitch. He isn't doing what you are stating. They are selling what they have now. After Feb 1 the deals will be different that is just the way business is. You sell what you have when you have it. That's it period.

[Curtis0620]

It has nothing to do w/ see past Charlie's back side as you state. It has to do with the fact that over here we keep up with the TIVO very closely and have not. The statements you have made show your lack of what has been going on.

I keep up just fine. Shortly DISH will be scrambling for a licensing deal with TiVo.

[jacmyoung]

...Now the real guess is: Who made the offer?

If Charlie did, I suppose that will eat up the cache of profits and end any repeat of the huge dividend this year...

TiVo's market cap is over $1B right now, inflated based on the win at the district court of course. Can Charlie even afford to buy at this inflated value, especially consider he had just thrown $1B at the investors? Is it even in Charlie's vein to buy anything at an inflated price?

Which was why I doubted he approached TiVo for a buyout. I am ruling out MSFT and ATT also since they are currently in litigation with TiVo. You don't go in tell TiVo you are interested in buying TiVo at the same time fighting TiVo in court, TiVo will never be afraid of the fight.

Google is also unlikely because they just got what they needed from TiVo for cheap, they are not in the DVR business, the only benefit from TiVo is Goolge's ad business which they already got from TiVo recently.

Apple? Maybe. Is there any indication Apple wants to be in the DVR business? What good will that do to Apple? Their Apple TV has been their one and maybe the only big flop so far, it would be stupid to add another TV/DVR side of it from TiVo which has been proven a failure so far also.

My bet is no one approached TiVo, TiVo's heads are just preparing for the possibility of a court reversal, in that case they know TiVo will tank, and they will be covered by that "change of control provision". It is a smart move, always prepare yourself for the worst, just like what Charlie is doing.

[mike123abc]

Change in control provision again is for friendly takeover. Promising golden parachutes in a bankruptcy does not mean anything. It more likely means that TiVo is at least considering selling the company.

Dish still has a couple billion in the bank, even after the $1 billion dividend last year.

[jacmyoung]

Change in control provision again is for friendly takeover. Promising golden parachutes in a bankruptcy does not mean anything. It more likely means that TiVo is at least considering selling the company.

Dish still has a couple billion in the bank, even after the $1 billion dividend last year.

Really? I thought when DISH raised that $1B it was at junk bond rate. If they have a large cash reserve, then I can see them buying TiVo after the court ruling, as Charlie said himself he saw a "relationship" with TiVo "after the path is clear." If so you can count on TiVo's investors being screwed, while the heads of TiVo are taken care of.

Besides when I said TiVo would tank in case of a court reversal, it was not the same as saying TiVo will be out of the business. TiVo will still have a value, just not an inflated one as it is now. TiVo's real value is about half of its current face value.

[Bob Haller]

This seems to be all you can do is bitch. He isn't doing what you are stating. They are selling what they have now. After Feb 1 the deals will be different that is just the way business is. You sell what you have when you have it. That's it period.

Yeah BUT the bills will be far different! and E KNOWS IT.

Kinda like buying anything and after the fact you find out the company had announced a large price raise, but failed to INFORM YOU, then tries collecting the larger sum.

Sure they can enforce the contract, but at what costs to reputation? future sales? media attention? bad word of mouth?

Do you know how closely investors watch this site? Years ago I prematurely leaked Mike Dugans retirement.

Found out the stock moved on the news, I got accused of attempted insider trading E PR office got calls. Uncle mike is a nice guy didnt realize my news would cause so much trouble

Mike OFFICIALLY announced his retirement the following week

Now MAYBE this price scheme is the best thing since sliced bread for E?

BUT if it isnt E management and stock holders knew in advance it was a sure churn cause, which makes E stock go down.

That may be why E doesnt want to talk about new prices, hopefully they are reconsidering.

Heck one E rep reportedly told a retailer they know it will cost them subs.

there should be a grandfathering for owned equiptemernt.

In this economy some new subs may not care about their credit score, just stiff E, refuse to return leased equiptement, and complain loudly to the media, their friends and everyone they know, besides complining to the authorties.

the bad reputation as a consumer rip off can haunt E far past this quarter or year.

If you were charlie would it be worth the risk?


TIVO has never played well with others and must spend way more on lawyers than R&D or bug fixes

They really need new management and it sounds like the golden parachutes have been packed

If E or any other company bought TIVO wouldnt it be a improvement?