Jeffrey Hinson has been elected to join the TiVo Board of Directors and will serve on the Audit Committee, in other words he will be looking at the finances of TiVo.Hinson has a strong background in managing the finance of big companies and has previously served as Executive Vice President and Chief Financial Officer of Univision Communications from March 2004 to June 2005.
I'm getting the impression that TiVo is a little worried about its financial position since it is not yet making a profit. Over the past 6 months TiVo has seen a gradual and consistent drop in its share price.
It is likely that the addition of Jeffrey Hinson may cause some sort of shakeup in terms of how the company aims to produce a profit, possibly resulting in changes in price plans, amount of advertising and licensing deals.
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And how many people killed JFK? Or did you get a tingling in your bumb knee? Maybe bad weather is on the way! ;-)
You're making some big jumps there. I wouldn't tie the new board member announcement to either of your conclusions in the last 2 paragraphs. Tivo has never made a profit except for one quarter when they were breakeven...nor have they forecast that they were going to make a profit anytime over the past year. They got a great infusion of cash from the September stock offering plus they clearly stated in their last conference call that they were going to re-evaluate subsidies for the standalone sales following the holiday season. Lest ye forget, they are also accruing interest from Echo win at a rate of $6 Million per month (in addition to the $90M or so already awarded by court). Share price has nothing to do with re-establishing a revolving credit line...in fact, a higher amount shows that at least one lender is willing to take a bigger "chance" on TiVo. This should provide confidence to investors rather than feed any fear that you may suggest. Hopefully Hinson will be a good addition to the board, but I certainly wouldn't suggest that he is the catalyst for the "shakeup" that you reference. All of the "shakeup" that you reference was mentioned clearly in their Q3 call.
Posted at 9:59PM on Jan 27th 2007 by LTJ