TiVo Inc. (TIVO) announced it has settled its pending patent litigation with Motorola (MOT, MSI), Cisco (CSCO) and Time Warner Cable (WC). Google (GOOG) and Cisco will pay TiVo an upfront lump-sum payment of $490 million, bringing the total from awards and settlements related to the use of certain TiVo intellectual property to roughly $1.6 billion.
TiVo has agreed to enter into certain patent licensing arrangements with Arris (ARRS), Cisco, and Google. TiVo and Motorola, Cisco, and Time Warner Cable agreed to dismiss all pending litigation between the companies. TiVo will recognize a portion of the payment as past damages during the second quarter and the remainder over time.
TiVo expects net income and adjusted EBITDA to benefit from lower litigation spend in the remainder of its fiscal year ending January 31, 2014 and beyond.
TiVo also announced its board has approved an expansion of stock repurchase authorization, doubling size to $200 million from $100 million. The Board has extended the stock repurchase plan for an additional two years until August 29, 2015. TiVo also intends to increase the size of its 10b5-1 trading plan significantly.
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