TiVo and Netflix are said to be closing in on a deal that would enable subscribers to the popular DVDs-by-mail service to download movies directly to their PVRs. According to a story in the latest issue of Newsweek, the deal could be OK’d as early as this week. While neither side would comment on what both are calling a "rumor," shareholders certainly seemed happy by the story, as was evidenced by Tues stock activity. TiVo shares were up nearly 15% at the close, to $5.08, while Netflix closed up shop up 7.3%, to $15.41.

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