TiVo, an interactive television company, yesterday said that it has expanded its partnership with AOL Time Warner to include a $21.5 million marketing and promotional campaign for the TiVo system.
Through the extended agreement, TiVo will be advertised across AOL Time Warner’s online, print and media properties. The marketing campaign’s main focus is to educate consumers about the features of TiVo’s personal digital television service.
TiVo’s initial agreement with AOL Time Warner was finalized in June 2000. It established TiVo as an AOLTV programming partner, in which AOLTV subscribers are provided with access to features of TiVo’s Personal TV Service. The agreement included an AOL investment in TiVo of roughly $200 million.
In a separate agreement, TiVo will gain access to $43.5 million in restricted AOL funds to use for working capital. In return for this TiVo has agreed to lower the exercise price of a warrant to buy 2,308, 475 shares of common stock held by AOL from $23.11 to $7.29 and will reduce the exercise price of a warrant to purchase 298,428 shares of common stock held by AOL from $30 to $7.29.