The Texas economy is one of the most robust in the world. Wildly profitable companies and ingenious entrepreneurs call this state home, and what happens here influences businesses around the nation. Here’s a slice of the profits, losses, big deals, and backroom decisions happening across Texas this week.
AT&T/TiVo Settlement: Signed, Sealed, DVRed
Another year, another financial setback for AT&T. The Dallas communications conglomerate agreed to a $215 million settlement with TiVo this week, concluding a long-running patent dispute. In the lawsuit, TiVo claimed AT&T’s digital video recorder service infringed on patented technology that allows users to pause and rewind live TV, according to CBS MoneyWatch. Unsurprisingly, TiVo shares shot up twenty percent the day the big settlement was announced.
The Bottom Line: TiVo is fighting its patent battle on multiple fronts: In May it accepted a $500 million settlement offer from the Dish Network, and it currently has Verizon in its legal crosshairs.
Shares in the bankrupt parent company of American Airlines were bumped from the New York Stock Exchange this week after a month of steadily dismal performance. AMR Corp. stock declined nearly eighty percent in 2011, culminating in the Chapter 11 filing in November. Businessweek reported that the company has lost a staggering $11 billion since 2001.
The Bottom Line: Much to the chagrin of airline employee unions that locked horns with AMR in labor disputes last fall, a recent review of the company’s assets turned up an interesting finding: a $30 million London townhome was used “for corporate functions from time to time,” Reuters reported.
Proposed Pipeline Pair Prompts Predictions of Petrochemical Prosperity
Houston-based Enterprise Products Partners announced this week that it has agreements in place for two major oil and gas pipeline projects to be completed by 2014. The 1,230-mile ATEX Express pipeline will transport 190,000 barrels of liquid natural gas per day to Texas from shale reserves in Pennsylvania, Ohio, and West Virginia, the Houston Chronicle reported. In another project, the company will partner with Genesis Energy (also based in Houston) to build a 149-mile underwater crude oil pipeline in the Gulf of Mexico that will