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What:Shares of Rovi Corporation rose as much as 11.6% early Monday, then ended the day up about 8.5% from the previous close after the company signed a renewal with Charter Communications.
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So what: Specifically,Rovi has renewed its patent license and interactive program guide agreement with Charter. Rovi's press release doesn't disclose the exact length of the new contract but -- keeping in mind Rovi signed its last agreement with Charter in July 2011 -- today's press release does note it's a "multi-year" deal.
The agreement has also been expanded in that Charter will also be able to license Rovi's products and services including Rovi Search, Recommendations and Conversion Services, Rovi Metadata, and Rovi Analytics.
Now what: Rovi CEO Tom Carson offered a hint at this expansion, saying "Our license renewal with Charter reinforces the value of Rovi's patent and product portfolio in Pay-TV homes across the nation. Rovi is pleased to have reached this significant license agreement with Charter and we look forward to continuing to work together as our respective businesses evolve."
If that wasn't enough, today's agreement comes only a few days after Rovi announced its natural-language spoken-voice interfaces will be integrated into a "portfolio of products" from DISH Network throughout 2015.
We should also keep in mind shares of Rovi are still down around 15% so far in 2015, partly due to recent legal rulings which caused investors to question the validity of Rovi's more than 5,000 issued and pending patents. These two developments, then, should be particularly encouraging to long-term investors on that front. For now, while I'm personally content keeping Rovi on my watch list for the next few quarters to get a better gauge of its efforts to achieve sustained profitability, I think current Rovi shareholders have every reason to celebrate today.
The article Why Rovi Corporation Stock Popped Today originally appeared on Fool.com.
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