Adeia Enters into IP License Agreement with Magenta Telekom

Rhea-AI Summary

Adeia Inc. (Nasdaq: ADEA) has entered into an IP license agreement with Magenta Telekom, a leading provider of Internet, mobile communications, entertainment, and business solutions. The agreement involves licensing Adeia's media intellectual property portfolio to enhance Magenta Telekom's video and pay-TV services. This strategic partnership aims to capitalize on the growing demand for digital video content among Austrian consumers, positioning Adeia as a key player in the European video services market.

Intellectual Property Expert

Entering into an IP license agreement with a significant player like Magenta Telekom is strategic for Adeia, particularly in a market where a high percentage of consumers engage with digital content. This partnership not only reinforces Adeia's position in the European market but also underscores the value of their media IP portfolio. Moreover, the focus on technologies that enhance customer experience, such as advanced search and targeted advertising, is indicative of Adeia’s commitment to innovation, potentially leading to an increase in licensing revenue streams. However, investors should be mindful that the success of such agreements depends on the execution and integration of these technologies. Thus, the long-term financial impact will be clearer as Adeia reports future earnings and provides updates on the progress of their technological initiatives.

Market Analyst

The licensing agreement between Adeia and Magenta Telekom reflects a conscious effort by Adeia to capture more of the European video services market. With a significant portion of Austrian consumers already engaged in digital video content, this move could position Adeia to capitalize on existing consumer behaviors. The focus on enhancing the customer experience through next-generation discovery and targeted advertising may serve to differentiate Adeia's offerings from competitors, potentially leading to market share growth. For retail investors, it is important to monitor Adeia's market penetration following this deal and to look for any increase in market share as an indicator of the partnership's success. Investors should also keep an eye on future financial disclosures for revenue derived from this and similar IP licensing agreements.

SAN JOSE, Calif., April 18, 2024 (GLOBE NEWSWIRE) -- Adeia Inc. (Nasdaq: ADEA) ("Adeia" or the "Company"), the company whose patented innovations shape the way the world explores and experiences entertainment, today announced Magenta Telekom, a leading provider of Internet, mobile communications, entertainment and business solutions, has entered into an agreement to license Adeia’s media intellectual property (IP) portfolio.

According to analysts at Statista¹, the vast majority of Austrian consumers (86%) report accessing digital video content. Magenta Telekom has played an important role in bringing next-generation digital communications and video entertainment services to its customers.

“The agreement covers certain Magenta Telekom video and pay-TV services in its network service provider operations,” said Dr. Mark Kokes, Adeia's chief licensing officer and general manager, media. “This demonstrates the growing significance of Adeia’s media IP portfolio in the European video services market. It is a position that we intend to expand by investing in innovations that enhance the customer experience. This includes next- generation discovery, search and targeted advertising technologies, among other initiatives.”

About Adeia

Adeia is a leading R&D and intellectual property (IP) licensing company that accelerates the adoption of innovative technologies in the media and semiconductor industries. Adeia’s fundamental innovations underpin technology solutions that are shaping and elevating the future of digital entertainment and electronics. Adeia’s IP portfolios power the connected devices that touch the lives of millions of people around the world every day as they live, work and play. For more, please visit www.adeia.com.

About Magenta Telekom

Magenta Telekom is a leading provider of Internet, mobile communications, entertainment and business solutions in Austria. The company has around 2,200 employees and generated sales of around 1.39 billion euros in 2022. The company offers ultra-fast broadband via fiber optic coaxial cable and mobile communications, entertainment and the latest technologies for digital life and work.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company’s current expectations, assumptions, estimates and projections that involve risks and uncertainties. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "could," "seek," "see," "will," "may," "would," "might," "potentially," "estimate," "continue," "expect," "target," similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond the Company’s control, and are not guarantees of future results. These and other forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: the Company’s ability to implement its business strategy; the Company’s ability to enter into new and renewal license agreements with customers on favorable terms; the Company’s ability to retain and hire key personnel; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; the Company’s ability to grow and expand its patent portfolios; changes in technology and development of new technology in the industries in which the Company operates; the evolving legal, regulatory and tax regimes under which the Company operates; unforeseen liabilities and expenses; risks associated with the Company’s indebtedness; the Company’s ability to achieve the intended benefits of, and its ability to recognize the anticipated tax treatment of, the recent spin-off of its product business; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, and natural disasters; and the extent to which the COVID-19 pandemic continues to have an adverse impact on the Company’s business, results of operations, and financial condition will depend on future developments, including measures taken in response to the pandemic, which are highly uncertain and cannot be predicted. These risks, as well as other risks associated with the business, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission ("SEC"), including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward- looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

For Information Contact:
Investor Relations
Chris Chaney
IR@adeia.com

Media Relations
JoAnn Yamani
joann.yamani@adeia.com
M: +1.408.781.5719

¹ https://www.statista.com/forecasts/1001168/most-used-media-services-in-austria

FAQ

What is the latest announcement from Adeia Inc. (Nasdaq: ADEA)?

Adeia Inc. (Nasdaq: ADEA) has entered into an IP license agreement with Magenta Telekom, a leading provider of Internet, mobile communications, entertainment, and business solutions.

Who is Magenta Telekom and what agreement have they entered into with Adeia Inc.?

Magenta Telekom is a leading provider of Internet, mobile communications, entertainment, and business solutions. They have entered into an agreement to license Adeia's media intellectual property (IP) portfolio.

What does the IP license agreement between Adeia Inc. and Magenta Telekom cover?

The agreement covers certain Magenta Telekom video and pay-TV services in its network service provider operations.

What is the significance of Adeia's media IP portfolio in the European video services market?

The agreement demonstrates the growing significance of Adeia's media IP portfolio in the European video services market, positioning them as a key player in enhancing customer experience through innovations in discovery, search, and targeted advertising technologies.