Chris Blount
01-28-04, 07:02 AM
Tue Jan 27,12:23 PM ET Add Business - Reuters to My Yahoo!
NEW YORK (Reuters) - Shares of TiVo (news - web sites) Inc. (Nasdaq:TIVO -news), a maker of digital video recorders, rose to their highest level in six months on Tuesday as the company raised $74 million in a secondary share offering.
While offerings usually pressure share prices, analysts said they were encouraged by evidence that TiVo was raising money to finance its future growth.
"In relatively new businesses like DVRs or satellite radios, the market rewards companies that are willing to spend money to get subscribers," said Rodman & Renshaw analyst Daniel Ernst. "TiVo now has the option of rebates, advertising or other methods to acquire subscribers."
TiVo shares were up 13 percent, or $1.29, to $11.08 in midday Nasdaq trading after climbing as much as 20 percent earlier in the session.
MORE (http://story.news.yahoo.com/news?tmpl=story&u=/nm/20040127/bs_nm/tech_tivo_dc_1)
NEW YORK (Reuters) - Shares of TiVo (news - web sites) Inc. (Nasdaq:TIVO -news), a maker of digital video recorders, rose to their highest level in six months on Tuesday as the company raised $74 million in a secondary share offering.
While offerings usually pressure share prices, analysts said they were encouraged by evidence that TiVo was raising money to finance its future growth.
"In relatively new businesses like DVRs or satellite radios, the market rewards companies that are willing to spend money to get subscribers," said Rodman & Renshaw analyst Daniel Ernst. "TiVo now has the option of rebates, advertising or other methods to acquire subscribers."
TiVo shares were up 13 percent, or $1.29, to $11.08 in midday Nasdaq trading after climbing as much as 20 percent earlier in the session.
MORE (http://story.news.yahoo.com/news?tmpl=story&u=/nm/20040127/bs_nm/tech_tivo_dc_1)