Shares of TiVo (TIVO) are rising after the company announced an expanded multi-year patent agreement with Alphabet's Google (GOOG, GOOGL).

EXPANDED PATENT AGREEMENT: On Thursday, TiVo Corporation announced that Google expanded its multi-year patent license agreement to expressly include YouTube TV. The agreement covers Google's use of TiVo's patented technologies worldwide and offers a license for Google's products and services across internet-based platforms and devices. "The world of video entertainment is expanding with exciting new consumer offerings such as YouTube TV," said Arvin Patel, executive vice president and chief intellectual property officer at TiVo's Rovi Corporation. "We are thrilled to extend our relationship with Google through the license of TiVo's innovations and technology that further consumers' ability to find and enjoy content on the device of their choice."

ANALYST REACTION: Following the announcement of the expanded agreement, JPMorgan analyst Sterling Auty noted that Google is already a patent licensee for the original YouTube and Google Fiber and the new contract is "coterminous" with that current agreement. He said that with the expanded Google deal, TiVo now covers four of the virtual multichannel video program distributors, Dish's (DISH) Sling TV, AT&T's (T) DirecTV Now, Sony (SNE) Vue and YouTube TV, which will enable the company to capitalize on users leaving larger pay-tv operators. The analyst added he is "especially excited" about the expansion due to millennial YouTube content consumption and the potential for TiVo to benefit through any success that Google experiences with the service. Auty keeps an Overweight rating on the shares.

PRICE ACTION: TiVo was up 2%, or 25c, to $14.75 in morning trading.