Nortel Completes Sale of Remaining Patents to Apple, EMC, Ericsson, and Others

Strategic Insights -

Nortel Networks Corporation, its subsidiary Nortel Networks Limited (NNL), and certain other subsidiaries, completed the sale of all remaining patents and patent applications to a consortium consisting of Apple, EMC, Ericsson, Microsoft, Research In Motion, and Sony for a cash purchase price of US$4.5 billion. The sale includes over 6,000 patents and patent applications spanning various technologies, including wireless, data networking, optical, voice, internet, service provider, semiconductors, and more. This extensive patent portfolio touches nearly every aspect of telecommunications and additional markets, including Internet search and social networking.

Key Takeaways:

  • The sale of Nortel's remaining patents and patent applications to a consortium of leading technology companies marks a significant milestone in the company's restructuring process.
  • The sale includes over 6,000 patents and patent applications, covering a wide range of technologies that are critical to the development and implementation of various telecommunications and internet-based services.
  • Nortel expects that its common shareholders and NNL preferred shareholders will not receive any value from the company's creditor protection proceedings and may see their equity interests canceled.
  • The sale is completed at a cash purchase price of US$4.5 billion, providing significant liquidity to Nortel and its stakeholders.
  • The patent portfolio covers nearly every aspect of telecommunications and additional markets, including Internet search and social networking, making it a valuable asset for the consortium of companies that acquired it.
  • The sale of Nortel's patent portfolio reflects the company's efforts to restructure and prioritize its assets, focusing on its core business and reducing its debt burden.

Statistics:

  • 6,000+ patents and patent applications sold to a consortium of leading technology companies.
  • US$4.5 billion: cash purchase price for the sale of all remaining patents and patent applications.
  • 2011: Year in which Nortel completed the sale of its remaining patents and patent applications.
  • Nortel: Nortel Networks Corporation, its subsidiary Nortel Networks Limited (NNL), and certain other subsidiaries, sold all remaining patents and patent applications.

Sources:

  • Nortel Networks Corporation, Press Release, August 1, 2011.
  • M2 PRESSWIRE via COMTEX.