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TiVo to buy content discovery service for $135M

SAN JOSE, Calif. (AP) -- TiVo will spend $135 million in cash to acquire Digitalsmiths, a company that provides searches of TV content across a variety of devices.

The pay TV service said Digitalsmiths has ties with seven of the top 10 U.S. pay-TV operators, and reaches 64 percent of the nation's pay-TV households. Pay-TV providers use its technology to recommend and let users search for and discover TV content on devices such as the Xbox, PlayStation, set-top boxes and smartphones.

TiVo faces increased competition from cable and satellite TV companies who are improving their own DVR services. At the same time, devices such as Roku, Apple TV and Google's Chromecast are simplifying Internet streaming of TV shows.

TiVo also increased its share repurchase authorization by $100 million and now has the capacity to buy back $186 million of its shares.

Shares of TiVo rose 30 cents, or 2.5 percent, to $12.49 in morning trading. The stock has traded in the 52-week range of $10.47 and $14.25.