TiVo Shares Popped: What You Need to Know (TIVO)

TiVo Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of TiVo (Nasdaq: TIVO ) briefly rose more than 10% in intraday trading today after the company announced a $500 million settlement of its patent dispute with DISH Network (Nasdaq: DISH ) and EchoStar (Nasdaq: SATS ) .

So what: Under the terms of the agreement, TiVo will get $300 million immediately and $200 million more in six payments spread out between 2012 and 2017.

Now what: Interestingly, investors don't see the deal as adding $500 million in new value. TiVo trades for $1.18 billion in market value as of this writing, up $80 million for the day. The implication? TiVo's underlying business is too damaged to make the stock a long-term buy. Maybe, but I'm siding with Citadel on this. Seeing Dish open its wallet could scare AT&T, Verizon, and others to follow suit.

Interested in more info on TiVo? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. AT&T is a Motley Fool Inside Value pick. You can try any of our Foolish newsletter services free for 30 days.

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