& cplSiteName &

Google Bids $900M for Nortel's Patents

Michelle Donegan
News Analysis
Michelle Donegan
4/4/2011
50%
50%

Google (Nasdaq: GOOG) has emerged as the stalking-horse bidder for Nortel Networks Ltd. 's patent and patent application portfolio with a bid of $900 million in cash for these assets, the companies announced on Monday.

The news that Nortel has chosen Google's $900 million cash bid in a stalking-horse agreement starts the procedure for what will be the Canadian vendor's final asset auction.

Nortel said it will file the stalking-horse asset sale agreement with the U.S. Bankruptcy Court for the District of Delaware as well as a motion for an auction, which it expects to be held in June 2011. Google's $900 million bid is the offer that other companies would have to beat in the auction.

Nortel's patent portfolio includes about 6,000 patents and patent applications covering "wireless, wireless 4G, data networking, optical, voice, internet, service provider, semiconductors and other patent portfolios," according to a Nortel press release, which also claims that the portfolio "touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking."

Google, along with Apple Inc. (Nasdaq: AAPL), was reportedly eyeing the bankrupt Canadian vendor's patents at the end of last year. (See Rumor: Apple, Google Eye Nortel Patents .)

Kent Walker, Google's senior vice president and general counsel, wrote on the company's corporate blog today:

    Google is a relatively young company, and although we have a growing number of patents, many of our competitors have larger portfolios given their longer histories. ... So after a lot of thought, we’ve decided to bid for Nortel’s patent portfolio in the company’s bankruptcy auction. Today, Nortel selected our bid as the 'stalking-horse bid,' which is the starting point against which others will bid prior to the auction. If successful, we hope this portfolio will not only create a disincentive for others to sue Google, but also help us, our partners and the open source community-- which is integrally involved in projects like Android and Chrome -- continue to innovate.

Why this matters
Nortel's patent portfolio has been one of the most eagerly anticipated asset sales from the bankrupt vendor. As such, bidding in the upcoming auction in June is likely to be fierce. (See Nortel Patents Sale's Pending.)

Google's interest is clear: The Internet search giant needs to beef up its patent position, and Nortel's portfolio would give the company a boost here.

Other vendors that have been reported as prospective bidders for Nortel's patents include Apple, Huawei Technologies Co. Ltd. , Motorola Inc. (NYSE: MOT), BlackBerry and ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), as well as Intellectual Ventures Management LLC , Interdigital and RPX Corp.

For more
Nortel's patent portfolio is the last major asset the vendor has to sell.



— Michelle Donegan, European Editor, Light Reading Mobile

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
pdonegan67
50%
50%
pdonegan67,
User Rank: Light Sabre
12/5/2012 | 5:08:45 PM
re: Google Bids $900M for Nortel's Patents


Since the company is so patent-poor in the cellular space, Google's need for these patents is greater than pretty much anyone else that might also be after them. And its resources are greater than pretty much anyone else that might be after them as well. Apart from Apple. I'd have thought these two must be favourites to secure these patents.


It will be interesting to know how China Mobile, Huawei and ZTE are going to play their hand, mind you. I'd have thought that many of the traditional European and U.S telecom equipment vendors will struggle to make a winning bid in their own right. Unless a subset of them somehow combine to put together a joint bid, of course.

From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
Facing the Facebook Video Threat
Gary Miles, Chief Marketing Officer, Amdocs, 7/17/2017
Brocade, Broadcom Merger in Doubt
Iain Morris, News Editor, 7/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.