Adeia Inc. and The Walt Disney Company announced a long‑term licensing agreement that resolves all pending litigation between the two firms. The deal grants Disney access to Adeia’s core media‑streaming technologies, including dynamic manifest generation and key‑frame detection, which are integral to Disney’s streaming services such as Disney+, Hulu, and ESPN+. The agreement’s financial terms and the exact duration of the license were not disclosed in the announcement.
Prior to the settlement, Adeia had filed lawsuits in late 2024 alleging that Disney’s streaming platforms infringed on its patents. The lawsuits focused on the same technologies that are now licensed to Disney, and the settlement eliminates the uncertainty that had plagued both companies for years. By ending the litigation, Adeia removes a significant legal risk and opens the door for future collaborations with Disney and other media operators.
The licensing deal has a material impact on Adeia’s financial outlook. Management raised the company’s full‑year 2025 revenue guidance to $425 million–$435 million, up from the previous $360 million–$380 million range, and lifted its net‑income forecast to $96.4 million–$113.9 million. The revisions reflect the expected revenue contribution from the Disney license and the broader commercial momentum that the agreement has generated.
For Disney, the agreement provides a strategic advantage by giving the company access to foundational streaming infrastructure that can enhance the performance and scalability of its global media platforms. While the financial terms of the license are undisclosed, the partnership is expected to strengthen Disney’s competitive position in the rapidly evolving digital media landscape.
Paul E. Davis, Adeia’s CEO, said the deal “reflects our commitment to enabling cutting‑edge media experiences and further validates the significance of our technology in connected entertainment.” He added that the agreement “drives strong momentum for our business” and underscores Adeia’s role as a key technology provider in the media and entertainment sector.
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