Free Newsletter

InterDigital fails to find buyer

Will focus on boosting licensing revenues from its core patents while finding partners or buyers for some portfolios

By CAROLINE GABRIEL

Published: 25 January, 2012

READ MORE: M&A | InterDigital | Patents/IPR

There may be a patents goldrush going on in the wireless industry, but at least one giant IPR holder has failed to cash in. InterDigital has abandoned its plan to sell the company on the strength of its patents, and will instead focus on its licensing business.

The company kicked off a strategic review six months ago and made it clear it was open to takeover bids, and several patent hunters, including Google and Apple, were rumoured to be seriously interested. However, no offer materialized, amid reports that firms were offering low prices. Then, Google's decision to buy Motorola Mobility effectively removed it from the race.


So the company will now investigate other options. These could include finding a buyer or partner for elements of its IPR portfolio. The firm said in a statement that it had identified "potential opportunities to further enhance value through targeted sales and/or partnering arrangements involving portions of our large and growing patent portfolio." Its "strong and largely unlicensed mobile infrastructure patent portfolio ... could generate significant third party interest in terms of a sale or licensing partnership" and a "substantial number of 3G and LTE terminal patents that are not necessary to drive our core terminal unit licensing business could be of significant interest to third parties, again in terms of sales or licensing partnerships."

In the meantime, its main efforts will concentrate on licensing its 19,500 patents and applications related to cellular technologies.

Announcing the change of heart along with its preliminary Q4 results - with net income of $21m on revenues of $74.2m - InterDigital said it now planned to base executive compensation around the goal of achieving at least $800m in recurring annual licence revenues within 3-5 years. It added that it had filed 140 new US patent applications in 2011 related to next generation wireless networks, and had, to date, received almost $3bn in royalties from 2G and 3G licences.

Chairman Terry Clontz said in a statement: "The process over the past six months, although not resulting in an offer for the whole of the company, has helped to reaffirm our belief in the breadth and depth of the patent portfolio, the strength of the R&D team, and our technology vision for the future."

Related Stories

Share

  • email story Email
  • print story Print
  • digit digit
  • facebook facebook
  • Twitter Twitter
  • Linked-in Linked-In
  • Comments (0)

COMMENTS

Add Comment
No comments yet. Be the first to add a comment!
MARKET PLACE

    BYOD: Market Analysis and Forecasts

    An in-depth insight into the rise of BYOD policies within the enterprise and analysis of the impact the trend will have on IT departments,...

    Voice Command, Control and Search on Mobile Phones: Market Analysis & Forecasts

    This report provides a comprehensive insight into the growing importance of voice command, control and search on handsets, analysing...

    Data Centre Network Equipment: Market Analysis and Forecasts

    This report provides a global assessment of the data centre network equipment market. Besides assessing the key market trends, sub-markets...

    HetNet Market Summary & Forecasts: Macro Cells, Small Cells & Wi-Fi Offload

    Carriers are struggling to cope with the explosion of data traffic on their networks, and the additional deployment of LTE and legacy...

    Over-the-Top Communications: Threats & Opportunities for Mobile Operators

    This report examines the implications of widespread adoption of mobile over-the-top IP communications for mobile operators, handset...

    Portable Gaming Consoles: Market Analysis and Forecasts

    This report provides a global assessment of the PGC market. In addition to assessing the key market drivers, market barriers, vendor...
WHITE PAPERS

    Satellite Phones: Will Dual Mode Help the Phoenix Rise from the Ashes?

    Satellite phones have followed an arduous path since their much-hyped launch more than a decade ago. The hype was followed by an e...

    Mobile Widget Platform Market Analysis: Understanding the Business Case and ROI

    This white paper presents an analysis of the mobile widget platform market, as well as metrics supporting a mobile carrier?s busin...

POST COMMENT

You must be a registered user to post a comment. or
Username *
Email *
Comment *