Well, tonight was the big night for Research in Motion and NTP. A settlement was reached where RIM will pay NTP $612.5 million US to essentially go away. The settlement amount is actually quite a bit smaller than what was expected by many analysts, around $1 million US. Additionally, there is no need on RIMâ€™s part to pay and royalties going forward, a bit boon to the company.
However hidden in all the excitement (RIM stock surged more than $13 or 18% after hours due to the somewhat favorable settlement) is some ominous news. First, RIM tacked on even less new subscribers than they previously estimated and earnings and revenue will be lower that predicted. They blame this on the â€˜uncertaintyâ€™ created by the lawsuit and threatened injunction. It seems like the investors (for the most part) didnâ€™t mind this extra news and are just happy that this is finally over.
Who knows, this lawsuit may have shaken the fundamentals of the company and product for some people. With Microsoft entering the market in a big way, this could only hurt RIM in the long run.