Although TiVo got a $104 million payment from Dish/EchoStar in its long patent litigation, it is expensive for the digital video recorder (DVR) company to pursue its court action against that company and several others. So, funding that litigation is one of the reasons for TiVo heading to Wall Street to raise more cash.
TiVo is out to raise $120 million from a sale of convertible senior notes due 2016. The notes from the private placement will be convertible into TiVo stock, although the conversion terms are yet to be negotiated.
The company said the proceeds will be used to “fund intellectual property litigation and research and development spending and for general corporate purposes, which may include funding sales and marketing expenses, increasing working capital, making capital expenditures and potentially for strategic acquisitions.”