Monday, May 2, 2011

EchoStar to Pay TiVo $500 million

CNN reported that EchoStar and TiVo had settled their legal dispute. EchoStar agreed to pay TiVo $500 million. You would think TiVo shares would rise substantially after they announced such a settlement. The entire company was worth only about $1 billion. Getting a payment worth half the value of your company is huge, right? Well…

Today, TiVo shares rose 29 cents to $9.86. Thirty cents is a decent move for TiVo shares. But after a $500 million settlement, I would have expected more. Perhaps my government had suppressed the price of TiVo shares because they knew what I would do tonight.

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