TiVo announced Friday that its board authorized a plan to buy up to $100 million of its outstanding common shares over a period of two years.
The share repurchase program will be funded through the company's existing cash. TiVo stock closed at $7.65 per share Thursday. With 119.2 million shares outstanding, it has a market capitalization of about $911.7 million.
TiVo had $162.0 million in cash and equivalents as of April 30. In May, the DVR company settled its seven-year-old patent litigation with Dish Network and EchoStar, which agreed to pay TiVo $500 million. TiVo received $300 million on May 2, and the remaining $200 million will be in payments spread over the next six years.
"We believe that the repurchase of our common stock represents one effective use of our capital and underscores our commitment to maximize value for our shareholders, given the significant recent market weakness and the cash on our current balance sheet as well as our NOL [net operating loss carryforward] position," TiVo president and CEO Tom Rogers said in a statement. "We are confident in our future growth prospects and believe we have the right elements in place and resources available to drive long term value for our shareholders."
TiVo's share-repurchase program will be effective on Aug. 29. The company said purchases may be made in either the open market or in privately negotiated transactions "as permitted by federal securities laws and other legal requirements."
TiVo is scheduled to report results for its fiscal second quarter ended July 31, 2011, after market close on Wednesday, Aug. 24.