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DirecTV Sells TiVo Stake

DirecTV Sells TiVo Stake

On Tuesday, DirecTV confirmed that it sold its stake in TiVo, taking another step away from the digital video recorder (DVR) company.

The DirecTV/TiVo transaction involved about 3.5 million TiVo shares. Wall Street analysts said shares were sold at about $7.20 each. During trading Tuesday, TiVo fell more than 14.5 percent to $6.41.

The sale of the TiVo stake is consistent with DirecTV's strategy of selling non-core assets, the company said. Also, DirecTV spokesman Robert Mercer said, "Our relationship is strong and Tivo remains an important part of our product lineup."

DirecTV has been a key partner for TiVo, accounting for 196,000 new subscriptions out of 264,000 added during TiVo's last fiscal quarter. Nearly 900,000 TiVo subscribers are with DirecTV, the DVR company said.

TiVo said it has a deal with DirecTV to supply DVR technology through 2007.

The share sale follows the departure of DirecTV Vice Chairman Eddy Hartenstein from the TiVo board. Hartenstein, who began serving on the TiVo board in October 2003, is reducing certain external obligations in order to dedicate more time to his responsibilities with the satellite TV company, TiVo said in a statement.

Also Tuesday, DirecTV said it sold a controlling interest in its India-based Hughes Software Systems to Flextronics, headquartered in Singapore. The transaction was valued at $226 million.
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