TIVO has been on shakey grounds for years now, and I don't believe has ever made a profit. So they have been on the deathwatch for awhile now.
Personally I hope TIVO survives.
As a company, I don't think Tivo will survive unless Congress and the FCC enable and enforce meaningful cable legislation reform - to include the Satellite Industry. The Telecommunications Act of 1996 did little to break the cable cartel of their set-top-box monopoly since almost 93% of STBs implemented are owned by the cable cartel (Motorola/Cisco). Cablecard has a dismal failure and, based on my recently interaction with Comcast, only 1 in 6 people in tech support know how to properly provision and activate a cablecard placed in a consumer device (Tivo, TV, etc.).
Hopefully the National Broadband Plan will require that MSOs---both Cable and Satellite---install a gateway device based on open-standards in the customer's home so CE manufacturers, like Sony, Samsung and LG, can make fully functional set-top-boxes. Given the history of the VHS, CD and DVR (even Blu-Ray for that matter), there is no reason why we shouldn't be able to buy a HD DVR at the local Best Buy for under $200 (to include Program Guide Data) and have our cable and DBS providers activate these devices. The Tivo brand may survive, but the company cannot survive given the existing market...and they probably won't survive when the likes of Sony and Samsung get involved. Unfortunately, Tivo's future implosion does nothing to help E* at this time.