Causation or Correlation? TiVo Shares Dip 15% While Patent Dispute Remains Ongoing

11Nov10

So by now, I’m sure you must have seen the coverage of the TiVo/DirectTV patent litigation. This case is in front of the Fed. Circuit this week (en banc no less!!)

If TiVo wins this appeal, it really could be a modern day coup d’état, in the sense that competitors will have to pay big bucks to license its patent. On the other hand, if TiVo loses, whatever potential leverage they have will surely disappear. The latter could prove fatal for a company that is already losing significant market share to competitors.

I saw an interesting article over at the Hollywood Reporter that states that TiVo shares are plummeting.

For the number people out there, here’s a hot tip– TiVo is trading at $9.60 right now. Scholars think there is a 60% chance for a TiVo victory, in which case the stock could shoot to $19/share. Do you guys believe that?



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