Bids For Kodak Patents Come In Below Expectations
Apple and Google have offered between $150 million and $250 million for Kodak patents, according to reports
Apple and Google are part of two separate consortiums which have tabled bids for Eastman Kodak patents, but the bidding has started off at the low end.
The offers came in at between $150 million (£96m) and $250 million (£160m), the Wall Street Journal reported. These offers are likely to rise, however, as tech giants look to get their hands on IP that could prove valuable either for smartphone camera technology or for future legal battles.
Kodak, which filed for Chapter 11 bankruptcy protection in January, believes its patents are worth as much as $2.6 billion (£1.66b).
It had previously been reported that Microsoft was working with Apple to acquire the patents and stymie Google’s efforts to grow its intellectual property portfolio. Google has been hungry for smartphone-based IP, as shown in its acquisition of Motorola Mobility.
It emerged last month that of the $12.5 billion that Google spent on acquiring the company, $5.5 billion was for patents alone.
According to reports, for its bid Google has teamed up with makers of Android smartphones, including Samsung, LG and HTC, as well as patent aggregation firm RPX. Sources said Apple and Microsoft formed a partnership with another patent aggregation company, Intellectual Ventures Management, for their bid.
Last year, a similar battle was fought over Nortel Networks’ patents. A consortium that included Apple and Microsoft won that round, with a serious offer of $4.5 billion (£2.87b). Initial bids were tabled at just $900 million (£575m).
Kodak reported its second quarter results on Friday last week, reporting a revenue decline of 27 percent year-over-year and a net loss of $299 million (£191m).
“We will continue improving our operating performance while balancing liquidity and growth. We are on the right path to complete our successful reorganisation,” said Antonio Perez, CEO and chairman of Kodak.
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