Carrier will pay more than $200 million
As if things weren't bad enough for AT&T after it has to dump the T-Mobile buyout deal, the carrier has now also resigned to Tivo on the order of $215 million.
It isn't going to be a pretty quarter for AT&T and it certainly isn't the way to start a new year. The company had been embroiled in a patent infringement lawsuit, brought forth by Tivo.
The two have struck an agreement wherein AT&T will make scheduled payments to give Tivo a total of $215 million, and in addition it will also have to pay a perpetual monthly licensing fee.
This comes at a time when AT&T is also looking to give T-Mobile a sum total of $4 billion.
The fee is a result of AT&T's admitted failure in securing a T-Mobile buyout. Under the terms of the acquisition contract, AT&T has to fork over a lot of money as a concession for wasting T-Mobile's time.
Tivo said it was pleased with the outcome and expects the deal to boost its business and allow it to spend more on furthering its strategy moving forward.
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Tivo of course is not in great shape either. It has been struggling to prove itself relevant in a market where everyone gets DVR service from their cable provider and many others can access streaming content directly from their TV.