TiVo to Buy Back Up to $100 Million in Stock
The digital video recorder company's news comes a day after a buyback announcement from AOL as CEO Tom Rogers cites "the significant recent market weakness and the cash on our current balance sheet."
NEW YORK - A day after AOL announced a $250 million stock buyback program after sharp declines in its stock price, digital video recorder pioneer TiVo said Friday that its board has authorized a $100 million buyback program.
TiVo shares closed up 5.2 percent at $8.05. AOL's stock on Thursday rose 12 percent following the buyback news.
As previously reported, several entertainment conglomerates are on pace to spend record amounts of money on stock buybacks and dividends this year to reward shareholders.
Stock buybacks are typically used to signal to the market that a company feels its stock is undervalued and that management has confidence in it. They also help boost reported earnings per share figures by reducing the number of outstanding shares.
Amid the recent stock market turmoil, TiVo shares earlier this week hit a 52-week low of $7.06.
"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," said TiVo president and CEO Tom Rogers. "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."