Why Rovi Corporation Shares Jumped

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 Rovi Corporation (NASDAQ: ROVI  ) jumped more than 10% early Wednesday after the company announced several new license agreements with companies including Google, Samsung, LG Electronics, and Sharp.

So what: According to two separate press releases from Rovi, both Google and Samsung have signed new multiyear agreements to license Rovi's patented video discovery technologies.

With this in mind, it's worth noting the verbiage in each release did differ slightly. The Samsung announcement, for example, focused on the South Korean conglomerate's "mobile and tablet devices worldwide." Meanwhile, Rovi's says Google's deal "offers a broad license for Google's product and services across Internet-based platforms and devices."

Separately, Rovi also announced LG Electronics has signed on to use Rovi video metadata in LG smart devices, which it says will enable LG to initially "deploy smart products using Rovi Video in Brazil and Russia." 

Finally, Rovi stated it has agreed to renew a multiyear DivX licensing agreement with Sharp, enabling the Japan-based company to integrate DivX HEVC technology into its next-gen AQUOS TVs and Blu-ray players.

Now what: Specific terms weren't released for any of the aforementioned agreements, so it's difficult to say exactly how much of a positive effect they'll have on Rovi's long-term business going forward. However, the deals undoubtedly serve as significant validation of Rovi's technology. As a result, and with shares currently trading at just 11 times next year's estimated earnings, I think investors would do well to at least keep Rovi on their watchlists.

Consider the 9 solid stocks in this free report
Rovi stock could represent a solid buy at today's levels, but that doesn't mean it's the only great investment our market has to offer. 

Dividend stocks, for example, can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2788035, ~/Articles/ArticleHandler.aspx, 9/3/2015 12:51:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 3 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:00 PM
ROVI $10.66 Up +0.23 +2.21%
Rovi Corporation CAPS Rating: **