TiVo Shares Soar on Legal Settlement With AT&T
News that the DVR company will collect at least $215 million from telco giant has its stock surging 18 percent in after-hours trading.
Shares of TiVo were soaring 18 percent in after-hours trading after the pioneering DVR company said it has settled a patent-infringement lawsuit with AT&T that includes a guaranteed $215 million plus a cut of monthly fees through 2018 should AT&T exceed certain subscriber levels.
The arrangement also calls for the companies to dismiss legal challenges they had filed against each other.
TiVo previously won a similar lawsuit against Dish Network and has one pending against Verizon Communications.
TiVo CEO Tom Rogers said the settlement "represents hard-earned compensation for our IP enforcement efforts."
The company's shares were off a nickel to $8.92 during the regular session Tuesday but jumped to nearly $11 after the closing bell.