SAN JOSE, Calif. - Adeia Inc. (NASDAQ:ADEA), a company known for its patented media technologies, has announced the renewal of a multi-year license agreement with entertainment giant Paramount. This renewal allows Paramount to continue utilizing Adeia's intellectual property portfolio for its streaming services, including the rapidly expanding Paramount+ platform.
Paramount+ has experienced significant growth, surpassing 63 million subscribers in the third quarter of 2023. The service, alongside Pluto TV, Paramount's free ad-supported TV (FAST) platform, has positioned the company as a notable player in both subscription and ad-supported streaming sectors.
Dr. Mark Kokes, Adeia's Chief Licensing Officer and General Manager of Media, highlighted the strategic importance of the agreement. "This renewal reflects our companies' shared commitment to providing high-quality digital experiences across the diverse video-streaming ecosystem," said Kokes.
Adeia is recognized in the industry for its research and development, as well as for licensing its intellectual property, which supports the advancement of technology in media and semiconductor sectors.
This information is based on a press release statement from Adeia Inc.
InvestingPro Insights
Amidst the renewal of a crucial licensing agreement with Paramount, Adeia Inc. (NASDAQ:ADEA) showcases promising financial health and market performance. With a market capitalization of approximately $1.21 billion and a P/E ratio of 17.78, the company stands on solid ground. Notably, the adjusted P/E ratio over the last twelve months as of Q4 2023 is an even more attractive 16.05, suggesting a reasonable valuation against the company's earnings.
Adeia has demonstrated a robust return over the last three months, with a 15.38% price total return, reflecting investor confidence in the company's growth trajectory. This performance is further bolstered by the company's strong free cash flow yield, a testament to its financial health as highlighted by an InvestingPro Tip.
Investors may also take comfort in the company's consistent dividend payments over the past 13 years, with a current dividend yield of 1.78%. The reliability of these payments, combined with the company's liquid assets surpassing short-term obligations, underscores Adeia's financial stability.
While there has been a recent downturn in price total return year-to-date at -9.2%, the InvestingPro Tips indicate that analysts predict the company will be profitable this year. This aligns with Adeia's strategic moves, like the Paramount agreement, which could pave the way for future growth. For those seeking a more in-depth analysis, there are additional InvestingPro Tips available, which can be accessed with the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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