TiVo and AOL had an earlier agreement in 2000 when AOL invested $200 million in TiVo. TiVo said it would return $48 million to AOL, which in turn would return 1.6 million shares of convertible preferred stock to TiVo.
AOL’s features will be available on TiVo’s Series2 DVR, which records television recording and also allows customers to use digital photos and access Internet radio.
Shares of AOL, which also signed a deal with Internet search engine Google on Wednesday, closed at $19.02 in Tuesday trading on the New York Stock Exchange. TiVo shares finished at $3.72 in Nasdaq trading.