For the tickler file…

September 15, 2004

Tivo’s (TIVO) budding relationship with TGC, a newly formed company that Tivo has a 49.4% stake in should be interesting to watch over the next few years to see how the relationship matures and how much information Tivo provides in future filings. Any time a publicly traded company starts doing business with a private company that it has a stake in and which one of its former executives is now running, it’s worth paying attention to. Even more so when the private company is based in the Cayman Islands, a known tax haven, (or at least that’s what the Caymans were known for before Hurricane Ivan came calling). Ta-Wei Chien left the company last month to become CEO and Chairman of TGC, which is licensing Tivo technology in an effort to make cheaper digital video recorders in Asia. In its recent Q, Tivo said that TGC would not have a material effect on Tivo’s earnings in 2005. That’s likely to change in the future, though, since it’s probably safe to assume that Chien, wouldn’t leave Tivo for just anything. Nor would the company probably allow him to leave without a lucrative sendoff. While Chien did get a one year consulting contract from Tivo according to the recent Q, the consulting deal doesn’t appear to pay him any actual money, something that’s pretty rare these days.

P.S.: I won’t be posting tomorrow because of Rosh Hashanah. For those readers who celebrate, L’shanah Tovah.

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