After a multi-day auction, a consortium consisted of Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony emerged as the winning bidder of Nortel's remaining patents, with a cash purchase price of US$4.5 billion.
Broadband and networking patents developed by bankrupt Nortel Networks went up
for sale earlier this week.
The sale includes more than 6,000 patents and patent applications spanning
wireless, wireless 4G, data networking, optical, voice, internet, service
provider, semiconductors and other patents. The extensive patent portfolio
touches nearly every aspect of telecommunications and additional markets as
well, including Internet search and social networking.
Google, which offered $900 million for the patents in April, was not among the
"Following a very robust auction, we are pleased at the outcome of the auction
of this extensive patent portfolio", said George Riedel, Chief Strategy Officer
and President of Business Units, Nortel. "The size and dollar value for this
transaction is unprecedented, as was the significant interest in the portfolio
among major companies around the world."
The sale is subject to applicable Canadian and U.S. Court approvals which will
be sought at a joint hearing expected to be held on July 11, 2011. Nortel will
work diligently with the consortium to close the sale in the third quarter of
However, the auction reportedly attracted the attention of the Justice
Department, which was said to be looking into whether the winner would be
gaining an unfair edge against the competition.