Ericsson Considers Bid for Nortel Patents in Growing Auction

Ericsson, the Stockholm-based telecommunications giant, is weighing a bid for some of the patents being auctioned off by Nortel Networks Corp. This development increases the number of potential bidders to at least four. Ericsson's plans are not yet public, and the company has approached several other companies, including Google, Microsoft, and Intel, to potentially team up on the bid. Nortel's bankruptcy filing in January 2009 has attracted several interested buyers for its portfolio of wireless and technology patents.

Key Takeaways:

Ericsson is considering an offer for some of Nortel's patents, joining at least three other potential bidders.
The company hasn't made a final decision on whether to bid or which patents it's most interested in.
Ericsson is considering teaming up with another company, such as Google, Microsoft, or Intel, on the bid.
Nortel's patents are highly valued, with some estimates suggesting a total value of over $1 billion.
Ericsson has a history of outbidding rivals for Nortel assets, including the $1.13 billion purchase of Nortel's wireless equipment business in 2009.
According to a patent broker, the growing interest in Nortel's patents may boost the price.
Google has already offered $900 million for some of Nortel's patents, with RPX Corp. and Research In Motion Ltd. also considering bids.

Statistics:

At least four companies are considering bids for Nortel's patents: Ericsson, Google, RPX Corp., and Research In Motion Ltd.
The total value of Nortel's patents may exceed $1 billion, according to a patent broker.
Ericsson acquired Nortel's wireless equipment business for $1.13 billion in 2009.
Google made an initial offer of $900 million for some of Nortel's patents.
Nortel filed for bankruptcy in January 2009.

Sources:

Bloomberg News