TiVo Trading Higher on AT&T Patent Settlement

The shares of TiVo TIVO are trading over seven percent higher on the session after the company announced a patent litigation settlement with AT&T T. Under the terms of the settlement, AT&T agreed to pay TiVo an initial payment of $51 million, followed by recurring quarterly guaranteed payments through June 2018, totaling $164 million, which together yield minimum payments of $215 million. In addition to these minimum payments, AT&T will pay incremental recurring per subscriber monthly license fees through July 2018 should AT&T's DVR subscriber base exceed certain levels. The settlement is not affecting AT&T today, as the stock is trading up about 0.7%. TiVo is currently trading at $9.60, up $0.68 or 7.62%.