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WILMINGTON, Del. - InterDigital, Inc. (NASDAQ:IDCC) has acquired Deep Render, an AI startup specializing in video codecs, the company announced Thursday. The acquisition comes as InterDigital’s stock has delivered an impressive 161.86% return over the past year, currently trading near its 52-week high of $393.28.
The acquisition adds Deep Render’s team of AI experts to InterDigital’s Video Lab and incorporates the startup’s patent portfolio in AI-based video coding into InterDigital’s existing video technology assets.
Founded in London in 2018, Deep Render has focused on using artificial intelligence for video and image compression to improve how video is processed and distributed to connected devices and services. This strategic acquisition aligns with InterDigital’s strong financial position, with InvestingPro data showing the company holds more cash than debt on its balance sheet and maintains excellent liquidity.
"With Deep Render’s strong focus on research and engineering, and on solving some of the most complex challenges in video, we believe this acquisition is an excellent fit for InterDigital," said Liren Chen, President and CEO of InterDigital.
The transaction is expected to strengthen InterDigital’s position in video compression technology, building upon its existing work in HEVC and VVC standards. The company stated that the acquisition deepens its talent pool in AI and video technologies. InterDigital boasts an exceptional 89.22% gross profit margin and a 25.6% return on assets, according to recent financial data.
Sebastjan Cizel, Head of Engineering at Deep Render, noted that the team shares InterDigital’s commitment to advancing video innovation.
InterDigital, founded in 1972, specializes in research and development focused on wireless, video, and AI technologies. The company licenses its innovations to makers of wireless communications devices, consumer electronics, IoT devices, vehicles, and providers of cloud-based services.
Financial terms of the acquisition were not disclosed in the press release statement. InterDigital has maintained dividend payments for 15 consecutive years, with a current dividend yield of 0.73%. According to InvestingPro, the company is currently trading near its Fair Value, with analysts forecasting continued profitability. InvestingPro offers 16 additional insights on InterDigital, including detailed analysis in their comprehensive Pro Research Report, available for over 1,400 US equities.
In other recent news, InterDigital Inc. reported a significant milestone in its financial performance, achieving $481 million in annual recurring revenue from smartphones, nearing its $500 million goal well ahead of its 2027 target. Jefferies has upgraded InterDigital’s stock from Hold to Buy, raising the price target to $450.00, citing confidence in the company’s growth potential. InterDigital has also renewed a multi-year patent license agreement with Seiko Solutions, covering cellular products under its essential patents for 3G, 4G, and 5G technologies. Additionally, the company renewed its patent license agreement with Sharp and signed its first deal with an electric vehicle charger manufacturer. In a strategic move, InterDigital was awarded a contract by the U.S. Department of War to lead research on spectrum sharing technology, collaborating with DeepSig and Skylark Wireless. The company’s Board of Directors approved a 17% increase in the quarterly cash dividend, raising it to $0.70 per share, effective in the fourth quarter of 2025. These developments highlight InterDigital’s ongoing efforts to strengthen its market position and financial performance.
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