Light Reading
Google submits $900M stalking-horse bid for Nortel's patent portfolio and kick-starts an auction process expected to be held in June

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
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.

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Huawei Video Resource Center
Innovating Access Technology With G.fast

10|1|14   |   3.42   |   (0) comments


Exploring the potential of G.fast technology from the point of view of the Broadband Forum, Huawei – and an end-user.
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (1) comment


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
SoftBank Eyes a DreamWorks Buy – Report
Sarah Reedy, Senior Editor, 9/29/2014
Like Us on Facebook
Twitter Feed