Verizon Communications has agreed to pay at least $250.4 million to TiVo under a mutual patent licensing deal.
The payments from Verizon to TiVo will include a $100 million initial cash payment followed by recurring quarterly payments totaling an additional $150.4 million through July 2018.
Verizon will also pay monthly license fees through July 2018 for each Verizon DVR subscriber in excess of certain pre-determined levels.
In addition to the cash payments described above, Verizon and TiVo are exploring, among other things, a future distribution partnership.
"We are pleased to reach an agreement with Verizon which underscores the significant value our distribution partners derive from TiVo's technological innovations and our shareholders derive from our investments in protecting TiVo's intellectual property," said Tom Rogers, CEO and President of TiVo. "We also look forward to working together on a variety of future opportunities as we continue to expand the content choices available to TiVo subscribers."
