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
So what: The two companies have entered into a mutual patent licensing arrangement. Under the deal, Ma Bell will pay $51 million to TiVo up front and subsequently fork over recurring quarterly guaranteed payments through June 2018, totaling another $164 million. Together, it all adds up to a minimum of $215 million in payments.
Now what: On top of that, AT&T will pay incremental recurring license fees per subscriber monthly through July 2018 if the company's DVR subscriber base exceeds certain thresholds. The pair are dismissing all pending litigation between them as part of the settlement, and they will cross-license patent portfolios related to advanced television. Verizon also currently has pending litigation with TiVo, so it may be the next to reach a settlement.
Interested in more info on TiVo? Add it to your watchlist by clicking here.