Don Landis said:
I was one who felt dish would drag it out until TiVo was broke and then buy it. I was wrong. But I also saw and studied the sec filings and saw that TiVo was ripe for a buyout. That's when I bought some stock as a speculation. I know from much experience that M&A always is good for the stock holder of the company being bought and maybe for the company buying. Google and Microsoft are surprises but I would think Apple is a more likely match.
Sent from my iPad using SatelliteGuys app
I agree Apple and Dish/SATS
might be more likely matches than Google and MSFT.
Part of the reason I thought Charlie was ready to settle was simply that he kept saying how well TiVo did in the lawsuit and why they should work together, but after the settlement, it appeared he had been preparing to step down as the CEO, it all made sense because who else would have the appetite to continue such fight?
The downside of that settlement was that my theory never had a chance to be proven
But it turned out my theory was largely proven anyway. The majority at the appeals court (with strong dissent) only upheld the $90M sanction for not disabling the DVRs, they never intended to lift the stay of the injunction, after they vacated a portion of it. I said back then Charlie paid way too much in the settlement, in part because he believed the court would finally enforce the injunction.
Now I begin to think otherwise. Charlie isn't that stupid, he knew the partial ruling already cleared him for all future activities, the only issue was he did not disable the old DVRs. He had to know the worst case was he would pay that $90M for that violation.
So why did he settle for $500M? Aside from the fact he had already planned to step down therefore didn't see the point of anyone else carrying on the fight, he also might have wanted to make TiVo look good, let TiVo claim victory, which adds more pressure on ATT/Verizon, who are Dish's direct competitors. Remember TiVo is still suing ATT/Verizon, and ATT/Verizon were using Dish's arguments (specifically the Dish's reexamination of the TiVo's patent) to their own advantages against TiVo.