The news that gave TIVO stock its bump today is that Google is expanding its multi-year patent license with the company. This means that the agreement now includes YouTube TV, which is a new effort from the company to provide streaming of cable networks to users via a subscription.
The agreement between TiVo Corp and Google allows the latter to use the former’s patents in its technology. It also includes a license for Google’s products and services spanning internet-based platforms and devices.
“The world of video entertainment is expanding with exciting new consumer offerings such as YouTube TV,” Arvin Patel, Executive Vice President and Chief Intellectual Property Officer for TiVo Corp’s Rovi Corporation, said in a statement. “We are thrilled to extend our relationship with Google through the license of TiVo’s innovations and technology that further consumers’ ability to find and enjoy content on the device of their choice.”
The original multi-year licensing deal between TiVo Corp and Google was signed back in 2014. The inclusion of YouTube TV to this deal is a major one for TIVO. Google is launching the service in more areas and it allows subscribers access to several cable channels without the need to even own a TV. Other versions of the app are also on the way.
TIVO stock was up 1% and GOOG stock was down slightly as of Thursday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.