Tessera Technologies' Shares Soared: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of miniaturization specialist Tessera Technologies (NAS: TSRA) are looking much larger today, up by as much as 27%, after the company announced that Korean conglomerate Samsung has renewed its license agreement.

So what: The original license agreement between the two dated back to Jan. 1, 2005, and included a renewal option, which Samsung has now opted to exercise. The term of the license has now been extended all the way to May 17, 2017.

Now what: Tessera CEO Robert Young expressed that he is thoroughly pleased to extend the long-term relationship between the companies. The terms of the agreement grant Sammy a non-exclusive license to use Tessera's compliant chip technology, and Samsung will enjoy a reduced royalty rate on the extension. Samsung is a huge player in the world of consumer electronics, and its licensing agreements can help keep some smaller players afloat, such as another recent renewal with Universal Display (NAS: PANL) .

Interested in more info on Tessera Technologies? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Universal Display. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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