Adeia (NASDAQ:ADEA), the Silicon Valley intellectual property powerhouse, dramatically raised its full-year 2025 financial outlook on Monday after securing a long-term media IP license agreement with The Walt Disney Company (NYSE:DIS).
The deal not only grants the entertainment giant access to Adeia’s foundational streaming and content delivery patents but also brings an immediate end to all outstanding litigation between the two companies, including cases involving Disney’s Hulu and ESPN units.
The revision marks a stark reversal of fortune for Adeia, which had slashed its guidance just seven weeks ago in November after a separate anticipated deal with AMD failed to materialize.
Driven by the "strong deal execution" of the Disney agreement, Adeia now expects 2025 revenue to land between $425 million and $435 million—a massive 16% increase at the midpoint from its previous range of $360 million to $380 million.
The settlement resolves a series of patent infringement lawsuits Adeia filed in late 2024 across the U.S. and Europe. By shifting Disney from a legal adversary to a long-term licensee, Adeia reinforces its "foundational role" in the streaming economy. "This deal reflects our commitment to enabling cutting-edge media experiences and further validates the significance of our technology in connected entertainment," said Paul E. Davis, Chief Executive Officer of Adeia.