DBSTalk Forum banner
Status
Not open for further replies.

Wall Street Eyes TiVo Verdict

1K views 6 replies 4 participants last post by  BillJ 
#1 ·
"The downgrade "reflects our view of the
surprisingly adverse, and swift jury verdict..."


Investor Reaction to DISH/TiVo Case

Given that the markets were closed Friday due to the Good Friday holiday, it was
difficult gauging investor reaction to the patent infringement case involving EchoStar
and TiVo.

Today could be a different matter, however, when the Street looks at the litigation
win for TiVo, which convinced a federal jury in Texas that the satellite TV company
infringed on its patented technology.

S&P wasted no time airing its opinion, downgrading EchoStar in a research note
released Friday. S&P's Tuna Amobi said the EchoStar downgrade "reflects our
view of the surprisingly adverse, and swift jury verdict on the DVR patent suit."

Amobi added, "While the $73 million award is unlikely to hurt EchoStar's long-term
finances, and a likely appeal could span years, we see possibly higher financial
exposure on the court's unqualified finding of willful patent infringement."

While the $73 million penalty is a big deal for some, others are eyeing TiVo's planned
request for a permanent injunction that could impact EchoStar's DVR service.

"EchoStar has to be more concerned about a possible injunction and ultimately being
forced into a licensing deal," said Ladenburg Thalmann analyst William Kidd.
"EchoStar is trying to avoid licensing TiVo's technology on an on-going basis through
a variety of processes, including an appeal, a separate suit of its own, as well as
through a re-examination at the U.S. patent office that EchoStar hopes could invalidate
TiVo's patents. These processes could take years to resolve.

"However, TiVo intends to seek an immediate injunction on EchoStar DVR sales, which
could force EchoStar into an immediate agreement, if the judge agrees to act before
EchoStar's appeal is decided. A licensing agreement would be an obvious but
manageable negative," Kidd added, saying he thinks a licensing fee could be largely
offset by incremental DVR fees.

www.SkyReport.com - used with permission
 
See less See more
#2 ·
Thanks for posting this article. Court decision hasn't hurt E* stock today. It traded down a little this morning but was up 12 cents a few minutes ago. Doubtful the judge will ban DVRs during the appeal process. My guess is either the decision gets overturned in the next couple years or TIVO and DISH reach a licensing agreement.
 
#3 ·
On the first trading day after TiVo won a jury decision in
its patent infringement case against EchoStar, shares in
the DVR pioneer soared on Wall Street. And it appears
investors shrugged off the lawsuit loss for the satellite
TV company.

Shares in TiVo climbed more than 7 percent in trading
Monday, to $8.65. The closing represents a new 52-week
high for the company.

Meanwhile, EchoStar stock also closed up Monday,
ending the day up seven cents to $30.04. The closing
price was a bonus for the company given that market
numbers were down for most of the day.

Analysts also took note of the case. Wedbush Morgan
upgraded shares in TiVo from "hold" to "buy."
Nonetheless, Kaufman Bros. and Ferris Baker Watts
downgraded the DVR company, each assigning the
company's stock a "sell" rating.

www.SkyReport.com - used with permission
 
#4 ·
Re: TIVO Stock
I'd take the money and run. The court decision has given life to slowly dying company, but that doesn't mean it will thrive.

Long term my money is still on E* - literally. I own 200 shares. They have the deep pockets to battle this out and they have a lot going for them in the satellite wars as well.
 
#5 ·
so where does echo's deep pockets come from? I get that D* has deep pockets with the backing of Murdoch, but I had thought E* was a typical small public business with funds raised primarily thru investers. Does E* has some other sources one doesn't normally hear about in regular news coverage?
 
#6 ·
Rogueone said:
so where does echo's deep pockets come from? I get that D* has deep pockets with the backing of Murdoch, but I had thought E* was a typical small public business with funds raised primarily thru investers. Does E* has some other sources one doesn't normally hear about in regular news coverage?
Lately the pockets have gotten deep from BIG profits.
 
Status
Not open for further replies.
You have insufficient privileges to reply here.
Top