TiVo‘s stock led the media pack yesterday, up nearly 4% after it announced that it will collect $250M from Verizon to settle their patent infringement dispute. And today it’s still on top, up about 3% to $10.25 in early trading. Lazard Capital Markets’ Barton Crockett helped this morning by upgrading his recommendation on TiVo stock to “buy” from “neutral” with a target price of $14. That’s a bit of a surprise: Yesterday, Crockett said that the Verizon settlement was “close to our expectations” and “not a sea-change.” But this morning he says that “upon further analysis” he concluded that the terms with Verizon make him “more optimistic” that TiVo will negotiate another settlement in its patent infringement case against Google’s Motorola Mobility, scheduled to go to trial this spring. “Google is seen by many as potentially a seller of Motorola Mobility,” Crockett says. “Settling the TiVo suit could make a Motorola sale much easier.” Brean Murray Carrett & Co analyst Todd Mitchell also says that the Verizon deal bodes well for the DVR pioneer. There’s a “high likelihood” the Motorola suit will be settled before trial because the business “cannot be priced with the overhang,” he says this morning. Cisco also might be motivated to resolve its differences with TiVo: If it doesn’t, then it would be “at a disadvantage pitching its home gateway business” from its recent acquisition of software company NDS, he says.
TiVo Shares Continue To Rise As Investors Expect More Patent Suit Settlements
What's Hot on Deadline
Hollywood Cowardice: George Clooney Explains Why Sony Stood Alone In North Korean Cyberterror Attack
Sony Responds To President Obama's Criticism: "We Had No Choice," Still Hope To Release 'The Interview'
Obama: Sony Made Mistake Pulling 'The Interview'; U.S. Will Respond Proportionally At Time And Place We Choose -- Update
More From Lieberman
- North Korea “Responsible” For Sony Hack, FBI Confirms
- Paramount Cancels 'Team America' Showings, Theaters Say
- Movie Theater Stocks Rebound After Chains Jettison 'The Interview'
- Lionsgate Sought Deal Talks With Sony Hacked Emails Reveal
- 'The Interview' NYC Premiere Canceled
- Barry Meyer Named To Federal Reserve Bank's Board In San Francisco